Shares to Buy in 2010

Now is a good time to start looking ahead to a better 2010 with our experts' New Year resolutions. But there are prospects for gain as well as pain with tips on which shares and sectors to buy - plus their forecasts about where the FTSE 100 will finish next year.

Last year's FTSE forecasts by each expert are shown in brackets.

Andrew Bell, head of research, Rensburg Sheppards Investment Management

FTSE 100 prediction: 6000 (5500)

Top share: Vodafone

Top sector: Pharmaceuticals

Top country: China, with Japan as a dark horse

Alan Steel, director, Alan Steel Asset Management

FTSE 100 prediction: 5800 (5600)

Top share: DTZ Holdings

"A share I'm buying is DTZ Holdings. They are specialists in commercial property management and basically they've got the Far East and developing countries sewn up. It's a cyclical share, and the current share price is a bargain."

Top sector: Financials

"Usually the best investment sector for a year is the bombed-out one from the previous year. So, being really brave, I plump for financials, especially banks."

Top country: Singapore

Top fund: Allianz RCM BRIC Stars

Ken Taylor, director, Mackenzie Taylor Wealth Management

FTSE 100 prediction: 5950 (4500)

Top share: AstraZeneca

Top sector: Emerging
markets

Top country: South Africa

Top fund: Jupiter International Financials

Thomas Becket, head of global investment strategy at PSigma Investment Management

FTSE 100 prediction: 5600 (new entrant)

Top share: BAE

"Solid earnings growth, overseas earnings and a good order book are all undervalued, while undue focus remains on defence spending cuts."

Top sector: Technology

"Cash-rich balance sheets, good growth prospects and plenty of M&A should support returns."

Top country: UK

"The UK market's highly defensive characteristics and reliance on overseas earnings should see it outperform in 2010."

Mike Hollings, chief investment officer at Matrix Investment Management

FTSE 100 prediction: 4200 (new entrant)

Top share: J Sainsbury

Top sector: Pharmaceuticals

Top country: Qatar

"Qatar has the highest per capita gross domestic product (GDP) in the world and the economy is set to continue benefiting from the dramatic growth in external and domestic trade. It sits on the third largest gas reserves in the world. The Index trades on a modest 12.5 times earnings (that is, the shares are priced at 12.5 times the earnings per share) which, given the long-term growth potential, seems very reasonable. To cap it all, forecast dividend yield is 5.5pc."

Mark Dampier, head of research at Hargreaves Lansdown

FTSE 100 prediction: 5750 (5000)

Top fund: Jupiter China

Top sector: Emerging Markets

"This has been my long-term favourite sector since the launch of the first emerging market funds back in the late Eighties."

Top country: China

Michelle Cracknell, strategy director at Skandia

FTSE 100 prediction: 5594 (new entrant)

Top country: "Short term, the country that provides the best return will be the one that is picked by the pundits, the returns being driven by the biggest influence of behavioural economics - herding!"

Juliet Schooling Head of research at Chelsea Financial Services

FTSE 100 prediction: 5400 (4800)

Top fund: M&G Global Basics

"I'm not optimistic about the UK economy and I think the outlook for 2010 is particularly opaque, so I would opt for a global fund, giving me exposure to other economies."

Top sector: Technology

"It's likely we will see some restocking next year, which will benefit the sector. It went into the downturn in better shape than many sectors, having already had its shake-up earlier in the decade."

Top country: Brazil

"Brazil may be an interesting place to be, with its abundance of natural resources, both soft and hard commodities, strong economic growth and growing middle class population, it looks reasonably well placed."

Julian Chillingworth, chief investment officer at Rathbone Unit Trust Management

FTSE 100 prediction: 5500 (5100)

Top share: Booker

"Debt has been reduced, and the company is taking greater market share. The overall benefits of restructuring are now coming through, although we anticipate tough competition within this space in 2010."

Top sector: Consumer defensives such as foods and beverages

Top country: Latin America

Gavin Haynes, managing director of Whitechurch Securities

FTSE 100 prediction: 5700 (new entrant)

Top share: Geared Growth shares of Jupiter Split investment trust

"The structure of the trust makes these shares a higher risk investment, but they provide geared exposure to the fund management skills of the highly regarded fund manager Philip Gibbs. And the fact Gibbs is committing a significant sum of his own money to the shares illustrates his interests to perform are aligned with investors'."

Top sector: Infrastructure

"High barriers to entry, healthy yields, sustainable growth and predictable cash flows of infrastructure projects make them attractive to investors in the current difficult economic climate."

Top country: Japan

"Having lagged in recovery in 2009, valuations look attractive and with global-leading companies in many sectors with strong trade links to Emerging Asia, I believe it could be the surprise package in 2010."