By - Abhijeet
Source: ShutterstockProfessional, Shutterstock
- Covid-induced mini crashes in the capital markets have critically trembled the valuations of companies and the securities floated by them.
- FTSE 100 has amassed a gain of more than 11 per cent in the last six months, while there are some heavyweight components that have dropped substantially.
Stock markets have remained extremely volatile over the last 15-month stretch as the repercussions of the coronavirus pandemic unwinded swiftly, with the countries acting in response to Covid-19 in a widely haphazard manner. The Covid-induced mini crashes in the capital markets have critically trembled the valuations of companies and the securities floated by them.
As the UK tries to get back on the path of recovery in line with the global rebound in economic activity, it can be a good time to explore some large-cap shares that are still trading way lower than their respective 52-week highs or the recent peaks obtained in the last six months.
The benchmark FTSE 100 has amassed a gain of more than 11 per cent in the last six months, while there are some heavyweight components that have dropped substantially in the corresponding duration.
As investors remain in the lookout for better opportunities in the stock markets, effectively reducing the average cost of acquisition for the shares, we take a look at three FTSE 100 stocks that have lost nearly 15 per cent of their respective market capitalisation in the last six months.
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Shares of GlaxoSmithKline Plc, the Brentford-headquartered pharmaceutical juggernaut, have plummeted more than 18 per cent in the last six months, eroding nearly £14 billion of the market capitalisation. According to the historical data available with the London Stock Exchange, the stock of GlaxoSmithKline had plunged 18.16 per cent to GBX 1,224.20 (4 March) from a share price level of GBX 1,496 as on 7 September 2020.
GlaxoSmithKline shares went deeper into losses after the company announced the delay in the clinical trial programme for the Covid-19 vaccine jointly developed by GSK and Sanofi Pasteur.
Shares of Reckitt Benckiser, the Slough-headquartered consumer goods major, have slipped more than 13 per cent in the past six months, effectively wiping out approximately £6 billion of the stock market value. The stock of Reckitt Benckiser has fallen 13.42 per cent in the last six months to GBX 6,282 from a market price of GBX 7,256 apiece. The stock has been on a largely falling trend since 29 July 2020.
Earlier last month, Reckitt Benckiser reported 11.8 per cent growth in the FY20 revenue to £13.99 billion. The revenue growth was mostly driven by the uptick in sales of selective consumer durable products during the Covid period, including the toilet cleaner Harpic and other disinfectant brands, including Dettol and Lysol.
Shares of Experian, the Dublin-based consumer credit report manager, have tripped close to 16 per cent in the previous six-month period. The sharp fall in the share prices of Experian has led to a reduction of a little more than £4 billion in the market capitalisation. As per the trading pattern available with the exchange, the stock of Experian in the last six month has tumbled 15.97 per cent to GBX 2,352 from a share price level of GBX 2,799.
The company expects revenue growth in the range of 3-5 per cent for the Q4 FY21, with an EBIT in the range of between $1,360 and $1,380 million for the full year ending on 31 March, Experian said in January 2021 while providing the trading update for Q3.