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Fund manager tips oil for strong future performance

Oil and other energy stocks will continue to perform well over months to come, a top fund manager has predicted.Tom Ewing at Fidelity UK made the comments after analysing the performance of various FTSE 100 stocks.It was noted that three banks - Barclays, HBOS and RBS - had fallen out of the top ten, while the value of the financial sector as part of the index's total was round to have fallen from 20 per cent to 16 per cent.This is due to the credit crunch, which has caused hundreds of billions of pounds worth of asset writedowns among banks across the world.Elsewhere, energy stocks and miners have experienced big boosts over recent months due to rising prices, and now make up 20 and 13 per cent of FTSE's value respectively."Whilst the fall in bank stocks has been precipitous, I believe the lack of visibility over earnings in 2009 and likelihood of increased regulation going forward makes a sustained rebound unlikely," Mr Ewing commented. "The outlook for the oil stocks, however, looks more promising…earnings and dividend streams for oil majors look very robust. This makes it difficult to see them losing their dominance in the FTSE for some time to come."

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