Market Commentary September 2019
03 October 2019
The main UK index recovered some ground lost during August by finishing the month of September up 2.79%. Steady gains made by oil & gas producers and industrial goods & services towards the end of the month were positive contributors.
As we enter the final few weeks to the official Brexit date of 31st October, the financial markets remain relatively sanguine.
For the month of September the top 5 FTSE 100 rising stock were;
- JD Sports Fashion PLC +19.9%
- TUI AG PLC +14.3%
- Persimmon PLC +13.9%
- British Land PLC +13.8%
- Standard Life Aberdeen PLC +13.2%
JD Sports Fashion PLC rose as the company announced strong interim results with a 47% increase in group revenue and strong sales on the domestic front.
For the month of September the top 5 FTSE 100 falling stock were;
- Imperial Brands PLC -14.8%
- Just Eat PLC -13.8%
- Pearson PLC -12.2%
- Fresnillo PLC -8.3%
- Unilever PLC -7.2%
Shares in Imperial Brands PLC suffered following a disappointing trade update mid-month, announcing that growth would be much slower than anticipated.
On the foreign exchange markets sterling strengthened slightly against both the US dollar and the Euro.
In the commodities market, the price of oil initially spiked by nearly 15% following the disruption to oil production in Saudi Arabia. However, with news that production volumes would be restored in the near term, oil actually finished the month lower.
The Bank of England maintained interest rates at 0.75% as it announced that CPI inflation fell to 1.7% in August, from 2.1% in July. The Bank expects the rate of inflation to remain below 2% in the near term.
| 30 September 2019 | 1 month | 6 months | 12 months | 24 months | 36 months | 48 months | 60 months | |
|---|---|---|---|---|---|---|---|---|
| FTSE 100 | 7,408.21 | 2.79% | 1.77% | -1.36% | 0.48% | 7.38% | 22.22% | 11.86% |
| GBP/USD | 1.2287 | 1.06% | -5.72% | -5.71% | -8.29% | -5.31% | -18.79% | -24.22% |
| GBP/EUR | 1.1273 | 1.91% | -2.97% | 0.44% | -0.59% | -2.34% | -16.72% | -12.17% |
| Brent Crude (US$) | 54.07 | -1.87% | -10.09% | -26.18% | 4.64% | 12.09% | 19.92% | -40.69% |
| Gold (US$ per oz) | 1,472.57 | -3.15% | 13.96% | 23.53% | 15.09% | 11.90% | 32.07% | 21.78% |
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 30th September 2019:
FTSE 100: www.investing.com
Currency: www.investing.com
Commodities: www.investing.com
FTSE 100 Risers & Fallers: www.sharesmagazine.co.uk
Inflation & Interest rates: www.bankofengland.co.uk
