A LEADING firm of investment advisers has forecast the FTSE-100 Index of leading shares will soar to 8,000 points next year.

According to Dresdner RCM Global Investors, the rise will be mostly driven by share gains among telecoms and media companies.

If the predictions come true, millions of people would benefit as tracker funds and other investments involving shares in the top tier of British companies make bumper returns.

The Footsie has already made strong gains in the past two months, hitting an all-time mid-session high on December 6 of 6774.7.

But a leap to 8,000 would mean companies in the index putting on an extra 18 per cent in value.

Dresdner forecast that a flood of so-called growth stocks, young companies which have the potential to rocket ahead in the future, will be promoted to the Footsie as investors chase technology-related companies.

It also said the flurry of takeovers and mergers would continue apace.

"We expect bids in the retail, financial and pharmaceuticals sectors in particular," said Nick Hodgson, sales and marketing director at the group.

Marks and Spencer, Sainsbury's and Storehouse are all seen by the markets as possible takeover prospects, while drugs groups Glaxo Wellcome and SmithKline Beecham are expected by many to merge eventually.

A takeover of NatWest by either Bank of Scotland or Royal Bank of Scotland is also on the cards.

On the downside for investors, many industrial companies will suffer from the continued strength of sterling.

Dresdner said strong economic growth was likely to continue to support shares.

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