Stockbroker Redmayne-Bentley says Britain’s top share index could reach its highest level since the financial crisis during 2013.
The firm predicts the FTSE 100 index could peak at 6,450 next year.
The last time the blue-chip index hit that figure was in December 2007.
Redmayne-Bentley expects stock markets to remain volatile but also to continue growing.
A survey of the company’s brokers and investment managers revealed they were confident about share price prospectsfor 2013, particularly in industries such as mining, engineering, retailing and energy.
Oil and gas was in their top five of sectors expected to show growth.
Redmayne-Bentley’s senior strategist Allan Collins said: “Our brokers are in a bullish mood, with almost 80% predicting equity markets to make further gains through the year.
“The FTSE 100 could get to a high point of 6,450 at some time during the year, driven by a combination of better economic news from the US and China, the EU moving closer to resolving its problems and low interest rates.
“On the downside, we expect the index to test the area just above 5,500 as the market responds to potential negatives such as Middle East tensions, climbing energy prices and the threat of higher inflation.
“Failure by politicians in Washington DC to agree on a new budget and a new setback in Europe could also trigger falls in share prices.
“Our consensus suggests the index will end 2013 at just above the 6,200 level; that is a modest rise of about 4.5% but one which, when dividends are added, is a return likely to make equities the asset class to concentrate on.
“The challenge ahead will not be getting the market’s direction and pace correct but identifying those companies that can produce superior profit growth during a period of a somewhat pedest-rian rate of economic growth.”