Market Commentary June 2020
02 July 2020
The main UK index recorded a hat trick of positive month on month closes as at the end of June.
Whilst the index has recovered from the low levels seen in March, it is still some way off pre-COVID-19 levels of around 7,600 witnessed in February this year. With economic demand subdued and oil and financial stocks making up a large constituent part of the index, it’s understandable as to why this is the case.
For the month of June the top FTSE 100 rising stocks were;
- M & G PLC +17.41%
- Pearson Group PLC +13.84%
- Bunzl PLC +12.75%
- Scottish Mortgage Investment PLC +11.19%
- Prudential PLC +10.92%
Following M & G announcing that the firm was ‘financially strong’ and that it intended to pay its planned dividend, the shares responded positively as investors welcomed the news.
For the month of June the top 5 FTSE 100 falling stocks were;
- Land Securities Group PLC -15.62%
- British Land Company PLC -12.38%
- ITV PLC – 12%
- Melrose Industries PLC –11.56%
- Intercontinental Hotels Group PLC –11.47%
Shares in Land Securities Group Plc reacted negatively to a raft of brokers cutting their share price target for the group.
As the economy continues to open up post lockdown, attention focused on the furlough scheme coming to an end and the potential increase in unemployment numbers.
Several businesses have already announced job cuts such as Rolls Royce, Swissport, British Airways and BP. High street retailer TM Lewin announced that it will close all stores and move to an online only business.
To further support the economy, The Bank of England announced an additional £100bn of UK government bond purchases. This continued the downside pressure on Sterling , particularly against the Euro.
| 30 June 2020 | 1 month | 6 months | 12 months | 24 months | 36 months | 48 months | 60 months | |
|---|---|---|---|---|---|---|---|---|
| FTSE 100 | 6169.74 | 1.53% | -18.20% | -16.91% | -19.21% | -15.63% | -5.14% | -5.39% |
| GBP/USD | 1.2401 | 0.45% | -6.49% | -2.32% | -6.12% | -4.81% | -6.84% | -21.06% |
| GBP/EUR | 1.1037 | -0.55% | -6.74% | -1.15% | -2.36% | -3.19% | -7.92% | -21.75% |
This newsletter is intended to provide a general review of certain topics and its purpose is to inform but NOT to recommend or support any specific investment or course of action.
Figures refer to the past and past performance is not a reliable indicator of future results. You may not get back the full amount of your investment.
Sources of information as at close of business 30 June 2020.
FTSE 100: www.investing.com
Currency: www.investing.com
FTSE 100 Risers & Fallers: www.sharesmagazine.co.uk
Inflation & Interest rates: www.bankofengland.co.uk
