Equities
Below are the ten best and worst performing stocks since the UK 100 made its all-time highs back in April.
This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Below are the ten best and worst performing stocks since the UK 100 made its all-time highs back in April.
Risers
Fallers
(Click on images to enlarge)
Source: Bloomberg (3 Sept 2015)
The under performers are dominated by the high beta mining stocks that have been so hurt by perceived economic turmoil in China. Note, however, the outperforming house builders and retailers benefitting from low inflation and low interest rates here in the UK.
As mentioned above, Morgan Stanley recently put out a ‘full house’ buy alert on international stock markets, effectively calling the bottom of 2015’s late summer equity slump. The last time it issued such a bullish signal, back in 2009 following a massive financial crash (so massive it was subsequently termed THE financial crash!), the UK 100 promptly commenced an uptrend that’s still valid today. Furthermore, Morgan Stanley’s bold call has got people recalling the months leading up to the Financial crisis when, in June 2007, it issued a ‘full house’ sell signal. Morgan Stanley has successfully called both the top and bottom of the market over the past 8 years.
Whether or not it’s called it right this time, you can be assured that investors and traders alike will react to this.
As traders and those who ‘sold in May’ return to the markets in September to find heavily discounted stocks and a market bottom called by one of the world’s leading investment banks, which way do you see the markets going? Whatever your position, one place not to be is on the side-lines.
It’s times like this that present the best opportunities to pick up the right stocks at great prices. Don’t miss out!
Read on for five stocks to watch in September…
ADN daily chart
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Will the price bounce up towards 400p or will it fall beneath lows of 290p?
Observations: ADN is a leading UK emerging markets investment fund, which is why this particular stock is currently touching on 3-year lows. To trade Aberdeen Asset Management would be to trade the Chinese economic outlook with one eye firmly on the US Fed. A US rate hike looking to be pushed back until at least the end of the year and a certain amount of nerve-calming regarding the world’s #2 economy from people who really should know their stuff is a start, while a look at the competition in Man Group, struggling with its flagship automated trading strategy gives ADN considerable potential as a vehicle on which to ride a possible emerging markets bounce-back.
Bloomberg broker ratings: 20% Buy, 60% Hold, 15% Sell; Consensus Target: 416p, +35% (26 Aug ’15)
Most Bullish: Peel Hunt, buy, TP 490p, +60% (5 Aug ’15)
Most Bearish: Morgan Stanley, underweight, TP 345p, +12% (23 Jul ’15)
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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