Major indices Performance
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The table above shows the performance of a selection of global indices from 5 November until 31 December, based on available data since 1995. The figures show that – excluding Australia’s ASX – these indices have rallied on at least 12 occasions in the past 22 years by an average of 2.6%. The ASX, a younger index, remains plagued by 2008’s 14.2% decline. Excluding that year, the Australian market has risen on average by 1.7%. After a disappointing 2015, all enjoyed a Santa Rally in 2016. Will 2017 see stock markets enjoy another happy ending?
Continuing the theme of years that have seen Santa Rallies, the table below denotes the 15 UK 100 companies that have seen their share price increase on the most occasions during the 8-week period to the end of the year.
The most striking takeaway from this table – calculated using data available since 1994 – is that the rank outperformer, CRH, is the only UK 100 company to have rallied on 20 separate occasions. The company has also enjoyed the best average performance of the 15 UK 100 companies on the list, climbing 9.3% on average.
Other companies of note include WPP, the only stock to have rallied in every year of the past decade, while Ashtead enjoyed an astonishing 29.8% rally in 2016, the largest gain by any UK 100 company, winning out over Prudential (+24.8%), Ferguson (formerly Wolseley; +19.8%) and Berkeley Group (+19.7%). Alongside WPP, Tesco is the only other company to trade negatively YTD, while Experian joins CRH with less than 1% growth.
Over the page, we’ll delve deeper into the Santa Rally trends of UK 100 companies in the past 23 years.
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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