WITHOUT treading over old ground, after two years of slowing economic conditions and disappointing stock markets, it is perhaps no surprise that companies should now be looking to their long-suffering shareholders for assistance.

BT began the current trend last year with the UK's biggest rights issue.

Last week, ICI asked its shareholders for £800m in order to reduce its debt and justify its expansion strategy of four years ago.

Telecom provider Thus is raising about £300m, although in this case parent Scottish Power is putting up the funds and letting its offspring leave the nest.

Others may not be too far behind as companies look to restore their balance sheets and, in many cases, cover up the expansionary excesses of the late 1990s, which look a little out of place in these more staid times.

Other names likely to look to shareholders for money in the coming months include Invensys, British Airways and Marconi.

The general economic uncertainty is weighing heavily on the FTSE 100 index of leading shares.

After recovering strongly after last September's events the index has managed to hold above the psychological 5000 level. However, pressure is mounting for a fall below this figure, although some relief may come this week from the banking sector.

Retail Banking currently constitutes 19 per cent of the UK market with heavyweights Barclays and Lloyds reporting profits this week.

Good news from both and the market may regain some more of its poise, though news to the contrary and a quick recovery for the market will be postponed.

John Pearson

Divisional director

l Gerrard is regulated by the Financial Services Authority. Share prices and the income from them can go down as well as up. Readers are advised to seek professional investment opinion before entering into dealings in securities mentioned in this article, which may be unsuitable in their personal circumstances.