This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
We have noted in previous top stock picks reports this year that we’ve seen not just ‘once in every four-year events’ take place, but multiple once in a generation events, a trend which continued into the second quarter. Notable market-moving events have come in abundance in the second quarter, greatly influencing the UK 100 . Below, we look at the best and worst performers through the first half of the year. Who are the heroes and villains?
The most striking performer in the tables above might be BT, the UK 100 stalwart that has fallen to 4-year lows but perhaps the most surprising performance comes from UK Index newcomer ConvaTec. The medical products supplier, having only been floated on the London Stock Exchange in October, has seen its meteoric rise not just rewarded with a listing on the UK’s blue-chip index, but has also outperformed its large-cap peers during 2017.
Fresnillo (9th; +27.9%) was the top performer during Q1 (1st;+29.9%), however has failed to build upon those gains as Gold remains stuck between safe-haven seeking and more hawkish central bank rhetoric. On the other hand, International Consolidated Airlines (2nd; +37.6%), the fourth worst performer of 2016, has built on gains made during the first quarter (4th; +21.3%) to cement its position in the UK Index leaders table, while Persimmon (10th; +27.9%) also continues to trade strongly, holding its top 10 position while peer Taylor Wimpey drops out.
The rest of the top performers is comprised of Defensive stocks, many of which have a European focus (Coca-Cola and Unilever) benefitting from Brexit uncertainty and the UK general election lifting the Euro against Sterling.
At the bottom of the index, BT (100th; -21.4%) has superseded Pearson (95th; -13.7%) as the worst performer, continuing to be dogged after its January profits warning due to accounting malpractices at its Italian division. Pearson shares, on the other hand, have welcomed the restructuring of the business, rallying from 2017 lows.
Other names languishing in the bottom 10 at 2017’s halfway point are Next (99th; -20.6%), holding its runner-up position as UK Retail Sales continue to fall, while Tesco, Kingfisher and ITV suffer from poorly-received results.
With Q3 loaded with yet more significant macroeconomic and political events, we’ve compiled an analysis of our 10 favourite stocks that we think you should watch as we enter the second half of the year. Which do you like?
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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