Invesco manager stands by positions in oil and telecoms

Invesco Perpetual UK equities manager Martin Walker has said he will hold his major positions in oil, pharmaceuticals and telecoms, anticipating a stabilisation in the home market.

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Mr Walker, who runs Invesco's £202.4m UK Opportunities £12.4m UK Focus and £137.6m Children's funds, said he did not foresee further significant downturns provided commodities stocks held up, and said a strengthening in the dollar would actually benefit large-cap companies with US operations such as GlaxoSmithKline and Rolls-Royce.

The manager said he was standing by his stake in HBOS, which he believed was trading on a discount of 10-15 per cent to book value, and was expecting good returns from packaging and beverage can producer Rexam.

British Airways was selected as another favourite, where Mr Walker thought analysts had failed to price in the value of the slots controlled by the company at Heathrow.

Mr Walker explained: "Bank stocks have already de-rated and consensus estimates in the banking sector have been downgraded by £7bn already. In terms of market levels, I do not see much downside from here."

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