Tag Archives: FTSE

United Kingdom: in the crossroads about the EU

United Kingdom has opened widely its economy since the beginning of the conservative governments in the 80s to become a service and financial country. Canary Wharf shows daily the strength of the financial services and also the crossroads in which the country lives its relationship with the European Union. Banks prefer to stay, but some part of the population does not find the advantages of being there. That’s why Prime Minister David Cameron promised to organize a referendum about this subject.

The political development has been surprising in the recent years: the first coalition government since the WWII, the creation of a far right party (UKIP) with relevant support in an always politically not radical country, the Scottish referendum about its independence from the Kingdom. Now, tories obtained recently the majority to govern alone, the UKIP lost quite a lot support and Scottish nationalists have seen how their wish to be independent disappeared with their surrender in the referendum, although they keep the strength as a party in Scotland.

New Cameron’s cabinet will pass a budget with cuts on the spending side, aligned with the traditional conservative policy. UK emerged strongly from the economic crisis: there has been a hard correction in the housing market, the unemployment is very low (around 5%) and the economic outlook for this and next year proposes a GDP growth higher than 2%. Interest rates will remain low, as the Bank of England promoted exceptional monetary policies as other central banks in the world. A rate hike is only probable from 2017.

What was the stock market evolution in the last five years? Volatility was high, but the evolution was very positive between May 2012 and May 2013. Then the FTSE 100, the main index, has moved between the 6.500 and 7.000 points.

5-year chart of FTSE 100

If we consider the evolution of the returns since 2010, the T-Advisor chart is as follows:

5-year return in FTSE 100

What are the companies with higher 1-year returns in the London Stock Exchange? This is the selection of the ones with returns over 100%. All are related to the services sector: tourism, replacement vehicles, gifts, pharma, distribution and restaurants.

6 best companies in London Stock Exchange

On the other side, the main losers are mainly energy and industrial companies. The companies with 1-year loses over 70% are an investment company, a pub chain, a mobile banking service and three companies linked to energy and mining:

6 worst companies in London Stock Exchange

UK is a country with a strong development in financial economy and that’s why there are several investment opportunities in the stock exchange. T-Advisor has a steady model portfolios with British assets rebalanced every second month. The portfolio has always had strong figures, as we show below:

United Kingdom model portfolio in T-Advisor

UK is a country with lots of opportunities for investors. They have a developed financial branch and markets and the economic environment is positive for this business. The only shadow is the evolution of the relationship with the EU, as it is its main market. A “Brexit” is not very probable, but it can bring uncertainties in the next months… and uncertainties are not very welcome for money.

T-Advisor ranking: the best in Q1

How was the first quarter of the year for your investments? T-Advisor publishes its ranking with the best stocks in the main world indexes taking into account its score. T-Advisor score is a specific tool developed by our company. It is calculated combining several ratios, mainly performance and risks.

New York Dow Jones Industrial Average has the following best stocks ranked by our score:

Score

Perf. Q1

Volatility

VaR day

VaR week

Walt Disney

9.4

6.76%

18.17%

-1.84%

-3.11%

Du Pont de Nemours

8.85

4.29%

17.07%

-1.85%

-3.52%

Unitedhealth

8.6

8.68%

19.54%

-1.96%

-5.07%

American Express

8.3

0.48%

18.51%

-1.97%

-4.95%

Microsoft

8.26

10.71%

26.28%

-2.13%

-5.45%

The ranking shows the richness of the American economy: there are companies from very different branches, as cinema, technology, health, finances or chemicals.

FTSE 100 in London has the following best stocks ranked by our score:

Score

Perf. Q1

Volatility

VaR day

VaR week

Weir Group

9.81

17.57%

25.55%

-2.77%

-4.34%

Bunzl

9.76

10.77%

14.16%

-1.34%

-2.30%

Kingfisher

9.73

11.80%

22.44%

-1.92%

-4.35%

Whitbread

9.65

12.87%

19.21%

-2.08%

-3.30%

Next

9.22

22.56%

16.81%

-1.54%

-2.22%

Surprisingly, the best scores in London are linked to companies from retail, consumer and essential supplies.

DAX 30 in Germany has the following best stocks ranked by our score:

Score

Perf. Q1

Volatility

VaR day

VaR week

Infineon Technology

9.87

13.71%

27.19%

-2.65%

-6.11%

BMW

9.63

8.06%

25.70%

-1.93%

-5.26%

Continental

9.22

10.79%

23.87%

-2.32%

-6.20%

Lanxess

8.75

14.03%

31.61%

-2.96%

-8.27%

Daimler AG

8.22

10.89%

27.41%

-2.30%

-5.88%

German technology, chemicals and car branches are at the top of our ranking.

IBEX 35 in Spain has the following best stocks ranked by our score:

Score

Perf. Q1

Volatility

VaR day

VaR week

Jazztel

10

41.85%

22.22%

-2.05%

-3.72%

Grifols

8.66

15.80%

22.24%

-2.32%

-4.90%

Grupo Ferrovial

8.62

12.94%

19.71%

-1.65%

-5.16%

Bankinter

8.31

19.33%

33.46%

-3.44%

-7.30%

Red Eléctrica

8.14

21.87%

23.32%

-1.74%

-4.52%

In Spain, Jazztel is at the very top profiting the consolidation in the telecommunication branch in this country. The performance of this share anticipates a possible merge with other company.

The February best performers in the main markets

February has been considered a traditionally unstable month for the markets. This year winds blow for a positive trend and the main markets performed over 5%. American Nasdaq closed February with 3.696 points, a 7,43% more than in the beginning of the month. In Europe, German DAX was near 9.700 points, exactly 9.692, a 5,5% more, while London FTSE beat the 6.800 points bar, till 6.809, a 5,32% more.

T-Advisor compiled the best performers in February in this reference indexes. In Nasdaq, the three more successful were Alexion Pharma, Mylan Laboratories and Facebook. All of them multiplied at least three times the index performance.

Perf. Month

Perf. YTD Score Volatility

VaR week

Alexion Pharma

32.92%

33.05% 10 37.7%

-7.18%

Mylan Laboratories

24.32%

28.04% 10 25.57%

-3.42%

Facebook

24.16%

25.25% 8.29 43.9%

-6.08%

In London, the three best companies in February were Kazakhmys, Fresnillo and Weir Group. All of them beat at least four times the index performance.

Perf. Month

Perf. YTD Score Volatility

VaR week

Kazakhmys

70.71%

38.71% 8.2 57.76%

-13.52%

Fresnillo

26.7%

27.63% 8.2 50.91%

-13.77%

Weir Group

21.72%

20.4% 9.8 27.28%

-6.33%

In Frankfurt, the best performers were Infineon Technologies, Continental and Lanxess. In this case, this companies only doubled the index performance.

Perf. Month

Perf. YTD Score Volatility

VaR week

Infineon Tech

11.37%

5.93% 8.93 26.93%

-6.14%

Continental

10.7%

10.63% 9.48 23.76%

-5.25%

Lanxess

9.53%

10.94% 7.93 32.48%

-9.08%

Chemicals (Alexion, Mylan, Lanxess), commodity producers and linked industries (Kazakhmus, Fresnillo, Weir Group), technology companies (Facebook, Infineon) and the automotive manufacturer Continental dominated as the best performers in February.