Shares rally fails to lift gloom

Investors have not been buoyed by April share recovery

Investors are now less confident about buying shares than they were before the war with Iraq, even though share prices shot up by more than a quarter in April.

Nearly half of those who were gloomy thought the economic climate was still too uncertain, according to poll for the Association of Investment Trust Companies (AITC).

And 26% felt that going to war had increased the threat of global terrorism.

Only 8% blamed a lack of job security for their low investor confidence, although this figure rose to 14% in London where there have been heavy job losses in the financial district.

Just 3% felt that the threat of the Sars virus had replaced concerns about Iraq.

Leading fund managers investing in the Far East were also asked about the possible impact of Sars.

The majority saw it as a short-term phenomenon that would provide an opportunity to buy stocks at cheaper prices.