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FTSE 250 index is a set of stocks ranked in the order of their market capitalisation, which reflect UK’s domestic economy and is looked upon as a yardstick by institutional investors and market experts. In addition, investing in the FTSE 250 businesses has been said to be a way of diversification of the portfolio.
The UK’s economy was reviving after Brexit and the general elections until it was struck by the pandemic. As per the Prime Minister, UK seems to have passed its peak and is gearing up for lockdown easing.
With domestic businesses being allowed to operate with sector-specific guidelines, access to easy credit and free trade negotiations with the United States under development, investing in the FTSE 250 businesses might lead to a plethora of opportunities. The UK-US trade pact is likely to lead to increased investments, increased exports of goods & services along with digital trade and exchange of professional services, which consequently would lead to increased employment. Furthermore, UK is likely to benefit in terms of regulation of financial services with trade pact from the US.
The outbreak of the coronavirus struck the global markets in the beginning of 2020. In this article, we would examine various businesses which have yielded double-digit returns amid the Covid-19 struck environment. (The data used for analysis have been taken Thomson Reuters.)
- Petropavlovsk Plc (LON:POG)
London Stock Exchange-traded Petropavlovsk Plc is the one of the UK’s largest precious metal and mining company by market-capitalisation with outstanding market-capitalisation of £867.28 million. The company specialises in gold production and is traded on the London bourse. The group operates a gold mine in Russia. The company was recently included in the FTSE 250 index. The company has witnessed a decent financial performance in the fiscal year 2019.
Due to the current economic pressures in the UK’s economy, the price of gold has been bullish, and the Gold stocks have also witnessed a similar trend. The group, with the ticker symbol “POG” traded on LSE at GBX 24.80 on 19th May 2020 at the time of writing (GMT 11:23 AM before the market close). The company has delivered a whopping return of 105.7 per cent on a Year to Date (YTD) basis.
- Avon Rubber Plc (LON:AVON)
United Kingdom-based innovative technology company, Avon Rubber Plc provides solutions in the field of Aerospace & Defence. In H1 FY20 results for the period ended 31st March 2020, the adjusted operating profit was up by nearly 45 per cent on constant currency basis. The company declared an interim dividend of 9.02 pence per share. The company recently secured a long-term body armour contract with the U.S. Department of Defence worth up to $600 million.
The group, with the ticker symbol “AVON” traded on LSE at GBX 2,905.00, up by 2.65 per cent on 19th May 2020 at the time of writing (GMT 11:35 AM before the market close). The company has delivered a return of 36.10 per cent on a Year to Date (YTD) basis.
- Allianz Technology Trust Plc (LON:ATT)
United Kingdom-based, Allianz Technology Trust Plc is an investment company which aims to generate wealth by investing in technology companies. The market capitalisation of the company while writing was hovering around £776.41 million. The company has good prospects under a free trade pact with the US, as reforms in the financial sector are expected.
The group, with the ticker symbol “ATT” traded on LSE at GBX 2,090.00, marginally up by 0.72 per cent on 19th May 2020 at the time of writing (GMT 11:46 AM before the market close). The company has delivered a return of 26 per cent on a Year to Date (YTD) basis.
- Ninety One Plc (LON:N91)
United Kingdom-based, Ninety One Plc is an asset management company with an international presence. The market capitalisation of the company while writing was hovering around £1,168.04 million. The company has a tremendous growth opportunity under the free trade pact with the US as there are lots of reforms in the financial sector expected.
The group, with the ticker symbol “N91” traded on LSE at GBX 190.50, up by 1.55 per cent on 19th May 2020 at the time of writing (GMT 11:58 AM before the market close). The company has delivered a return of 24.10 per cent on a Year to Date (YTD) basis.
- Edinburgh Worldwide Investment Trust Plc (LON:EWI)
The investment group, Edinburgh Worldwide Investment Trust Plc strives for capital appreciation in the long term by investing in various sectors of the global equity markets. The market capitalisation of the company while writing was hovering around £752.19 million.
The group, with the ticker symbol “EWI” traded on LSE at GBX 239.50, marginally up by 0.21 per cent on 19th May 2020 at the time of writing (GMT 12:06 PM before the market close). The company has delivered a return of 21.30 per cent on a Year to Date (YTD) basis.
- Polar Capital Technology Trust Plc (LON:PCT)
United Kingdom-based, Polar Capital Technology Trust Plc is an investment company which aims to generate wealth by investing in technology companies. The market capitalisation of the company while writing was hovering around £2,578.59 million. The company is likely to flourish under a free trade pact with the US as reforms in the financial sector are expected.
The group, with the ticker symbol “PCT” traded on LSE at GBX 1,904.00 on 19th May 2020 at the time of writing (GMT 12:10 PM before the market close). The company has delivered a return of 20.30 per cent on a Year to Date (YTD) basis.
- Gamesys Group Plc (LON:GYS)
Gamesys Group PLC is the United Kingdom-based international online gaming operator and is on-track for future growth in an evolving global sector. The company has a resilient business model with strong cash generation. With people staying indoors amid the coronavirus, online gaming has gained further popularity as home entertainment. The market capitalisation of the company while writing was hovering around £904.26 million.
The group, with the ticker symbol “GYS” traded on LSE at GBX 821.00 on 19th May 2020 at the time of writing (GMT 12:18 PM before the market close). The company has delivered a return of 17.70 per cent on a Year to Date (YTD) basis.
