The newspaper found that the majority of experts are predicting only slight growth in 2008, with the index set to be 73 points higher at this point next year.

Howard Wheeldon of BGC Partners told the Sunday Times that the “intensity” of the sub-prime crisis is expected to continue into next year, having a negative impact upon confidence among investors.

“I expect continued falls throughout the first half of 2008 and a period of flatness thereafter,” he commented.

Commenting on investor activity in 2007, John Roundhill, director of Capita Registrars said that private investors “hate trading in volatile markets” and tend to “sit tight” when stock prices fluctuate.

Meanwhile, investors appear to have been “reluctant” to place more money in equities during the autumn, he added.

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