FT Predicts Effect Of Election On Shareprices

The FT has offered its opinion on how the general election will affect various companies’ share prices. It consists of two groups of ten firms: one group contains those which might be expected to benefit from a Conservative victory/Labour defeat and the other those which would benefit from a Labour victory/Conservative defeat.

Media shares which would benefit from another Tory government include BSkyB, due to the possibility of tighter Labour regulations and tougher taxes, and Cable & Wireless, which could be hurt by possible Labour/BT links.

Those which would benefit after a Labour win would be United News & Media, from a close association of its chief executive Lord Hollick with Labour, and Scottish TV, whose franchise would be strengthened by Scottish devolution. It is also expected that major advertisers would also experience a positive effect on their prices: BT because of a Labour pact on broadband net and Unilever because of a possible Labour rapprochement with the European Union.