FTSE 100 Week 8 Results

FTSE_100_Wk8_Results.pdf

The market appears to have accepted that the world is going to have to live with Covid-19 and its implications but the FTSE 100 is still being restrained due to lack of progress with Brexit talks. With fears of a hard exit from the EU, the FTSE 100 ended 1.4% lower over the week to close at 6001.89.  Only 26 of the FTSE 100 shares made gains this week but 43 of our entrants made positive gains.

Doubts over a recovery intensified after the country's economy contracted by a record 20% in the second quarter.  That was against a backdrop of UK public debt topping £2 trillion for the first time ever and only tempered by news of retail sales volumes rising by a better than expected 3.6% in July and above pre-pandemic levels.

On the market homebuilder Persimmon outperformed its peers with a 5.6% gain after it said it would reinstate its dividend, making it one of the first UK-listed companies to bring back a dividend after the initial shock of the pandemic.  The other good performers were Scottish Mortgage Investment Trust (+5.1%), Ocado Group plc (+4.2%), Ferguson plc (+4.1%) and InterContinental Hotels Group plc (+2.5%).

BP PLC was one of the worst weekly performers on the FTSE 100 down 6.6%, pressured by weakness in oil prices through the week.  Both BP and Shell are down 24% since our competition started.

Other poor performers this week were BT Group plc (-5.8%), Evraz plc (-6.1%), M&G plc (-6.5%), Standard Chartered plc (-7.1%) and Standard Life Aberdeen plc (-9.0%).

Our leader is still Hansen Low but his lead is its narrowest since he hit the top in week 3 with Stewart Morgan and Pigman’s Dad hot on his heels.  First two week leader Sammy’s Granny made the best gain of the week to rise to seventh place and the biggest movers were Dave Riddell, up 23 places and Chloe Carmichael up 18 places.  

Biggest faller was Keith Davison down 21 places and at the other end of the table there was good news for Robin Grant who moves off the bottom for the first time.

The eight weeks since the competition started has seen drastic falls and gains on the FTSE 100.  Fresnillo has made a blistering 72% gain and along with Polymetal (up 38.6%) and Scottish Mortgage Investment Trust (up 24%).  On the downside a stark reminder that shares can fall as well, International Consolidated Airlines (-41%), easyJet (-35.6%), Carnival (-35.4%) and Melrose Industries (-33%) are prime examples!

Five and a half weeks until our FTSE 100 competition closes on 30th September so it will be interesting to see how that all plays out.