Market Commentary September 2020


Craig Hendry

Craig Hendry

Managing Director & Chartered Financial Planner


The main UK index slipped into negative territory again in September as fears of a second wave of coronavirus emerged. The threat of further restrictions and localised lockdowns saw the market values of travel and leisure related stocks push the market to a 1.63% retreat from August’s close.

Brexit once again featured in the news headlines as negotiations between the UK and EU resumed with warnings from both sides as to the real potential of a no-deal scenario. This further dampened investor sentiment for risk assets.

I’ve quite often warned investors to expect continued market volatility and this was evident throughout September with daily index movements as wide ranging as +2.39% and -3.38%.

For the month of September the top FTSE 100 rising stocks were;

  • GVC Holdings PLC. +22.33%
  • Melrose Industries PLC +14.93%
  • DS Smith PLC +13.92%
  • JD Sports Fashion PLC +13.61%
  • Mondi PLC +11.53%

Ladbrokes owner GVC Holdings PLC saw its share price rise as sector rival William Hill was the subject of a takeover bid by US casino operator, Caesars.

For the month of September the top 5 FTSE 100 falling stocks were;

  • International Consolidated Airlines Group S.A. -53.17%
  • Rolls Royce Holdings PLC -40.26%
  • Whitbread PLC – 13.97%
  • Taylor Wimpey PLC –13.96%
  • Polymetal International PLC –13.93%

As mentioned above, travel stocks were already under pressure this month. News that British Airways owner IAG planned to raise £2.5bn at a discount of around 35% to the share price, heaped further pressure on the stock with the share price falling by more than half during the period.

On the currency markets, with a Brexit no-deal being touted, sterling came under pressure and fell against the US dollar and the Euro.

The Bank of England announced that twelve month CPI inflation fell to 0.2% in the previous month (August). The Bank expects this to remain below 1% until early 2021 and maintained the Bank rate at 0.1%.

 30 September 20201 month6 months12 months24 months36 months48 months60 months
FTSE 1005866.10-1.63%3.42%-20.82%-21.89%-20.44%-14.98%-3.23%
GBP/USD1.2923-3.30%4.05%5.16%-0.83%-3.54%-0.41%-14.58%
GBP/EUR1.1023-1.54%-2.09%-2.25%-1.79%-2.80%-4.50%-18.57%

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 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