(Bloomberg) -- For the first time in more than three years, investors that are bullish on UK equities outnumber those that are bearish.
A net 2% of investors surveyed by Bank of America Corp. say they are overweight UK equities in a global context, the first positive reading since June 2021, strategists including Andreas Bruckner said in a note to clients.
Jitters in the technology sector and broader global equity market in recent months — partly linked to fears around a US recession — have made the UK’s non-cyclical sectors more attractive. Bank of America said Tuesday that exposure to utilities had hit the highest level since 2008, while investors are the most overweight on consumer staples in a year.
Fund flow data also suggests the tide may be turning for British shares, with the change of government in Britain in July seen as positive for domestic firms that have faced years of instability after Brexit. While £919 million ($1.2 billion) was pulled out of UK equity funds in July, that was the smallest monthly outflow year-to-date, according to the Investment Association.
The UK’s benchmark FTSE 100 has climbed about 11% this year in dollar terms, outperforming the Euro Stoxx 50.
--With assistance from Michael Msika.
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