The rapid spread of coronavirus to several unaffected areas has made experts lose sleep over global growth worries, and the pandemic is jolting investor sentiment across the markets world over.
The benchmark equity indices of the UK market – the FTSE 100 tumbled ~ 6.63% on a YTD basis to February 26th, 2020, and the FTSE All-Share index has slumped ~ 6.4% during the same period.
The United States’ major equity gauge, the S&P 500 index slumped ~ 3.54% in the same period, while Germany's DAX Composite Index slipped 3.92%.
Nevertheless, despite a global selling rush in the equity assets, 26 FTSE All-Share stocks traded on the London Stock Exchange delivered a double-digit price return on a YTD basis amid pandemic fear, as compared to 29 S&P 500 stocks that handed a double-digit price return in the period under review.
The UK’s stocks which recorded a solid double-digit price return include names like Galliford Try Holdings PLC (LON: GFRD), up 81.2%, Petropavlovsk PLC (LON: POG), up 55.4%, Sirius Minerals PLC (LON: SXX), up 48.9%, Daejan Holdings PLC (LON: DJAN), up 48.5% and Kier Group PLC (LON: KIE), up 34.2%, respectively. And, top-performing stocks at the Wallstreet during the same period include names like NortonLifeLock Inc (NYSE: NLOK), up 30.9%, L Brands Inc (NYSE: LB), up 25.7%, Regeneron Pharmaceuticals Inc (NYSE: REGN), up 22.0%, SBA Communications Corp (NYSE: SBAC), up 19.6% and T-Mobile US Inc (NYSE: TMUS), up 19.4%, respectively.
At the last reported closing as on February 26th, 2020, the FTSE 100 index had dropped about 685.02 points or 9% from its 52-week high level of 7727.49, the mid-cap gauge FTSE 250 tumbled approximately 1491.31 points or 7% from its 52-week high level and the FTSE All-share index traded approximately 336.84 points or 8% lower from its 52-week high level, which reflects that the primary and prevailing trend is unfavourable for the investors and traders.
26 FTSE All-Stocks moved against the broader market trend
It is the beauty of the equity market that no matter which broader cycle is prevailing in the market, there are always several counters which report performance completely contra to the broader trend. Here, in this piece of work, we are sharing a list of 26 stocks which delivered a double-digit gain on a YTD basis to February 26th, 2020, whereas the benchmark UK indices are down by high single-digit.
|Ticker||Company Name||Company Market Cap (Millions, GBP)||GICS Sector Name||YTD Price PCT Change||5-day Price PCT Change|
|GFRD||Galliford Try Holdings PLC||183.7||Industrials||81.2%||-3.4%|
|SXX||Sirius Minerals PLC||371.4||Materials||48.9%||2.5%|
|DJAN||Daejan Holdings PLC||1,317.1||Real Estate||48.5%||53.9%|
|KIE||Kier Group PLC||210.6||Industrials||34.2%||-12.6%|
|AVON||Avon Rubber PLC||844.2||Industrials||29.2%||-1.3%|
|RCH||Reach PLC||500.7||Communication Services||21.7%||1.1%|
|LSL||LSL Property Services PLC||345.4||Real Estate||20.1%||-4.6%|
|DPEU||DP Eurasia NV||90.3||Consumer Discretionary||17.6%||-1.4%|
|MGNS||Morgan Sindall Group PLC||861.9||Industrials||16.0%||-3.0%|
|COST||Costain Group PLC||201.2||Industrials||15.7%||-8.3%|
|GEMD||Gem Diamonds Ltd||82.6||Materials||15.5%||-10.6%|
|HAST||Henderson Alternative Strategies Trust PLC||117.7||NA||14.6%||-1.0%|
|PSN||Persimmon PLC||9,893.2||Consumer Discretionary||14.2%||-6.7%|
|BA.||BAE Systems PLC||20,711.2||Industrials||13.5%||0.2%|
|IHP||IntegraFin Holdings plc||1,686.3||Financials||13.5%||-4.5%|
|RIV||River and Mercantile Group PLC||245.4||Financials||13.1%||-0.7%|
|DWF||DWF Group PLC||444.4||Industrials||12.2%||-1.1%|
|NG.||National Grid PLC||37,061.6||Utilities||11.0%||-1.8%|
|PNN||Pennon Group PLC||4,796.7||Utilities||10.3%||-6.0%|
*Source: Thomson Reuters.
Market analysts are of the opinion that the market is expected to remain in pain in the coming days as well, and the movement from hereon will largely be dependent on global cues. If the coronavirus crisis extends for a couple of months more, then there could be major global growth risk, which can impact the UK markets too.
The impact of the Coronavirus outbreak may get extended (if several global news flows are to be believed), though several agencies are working relentlessly, finding a solution, while China, as per some latest emerging reports, has taken some hard measures to contain the spread to other countries.
Coronavirus has taken lives of around 2,800 people worldwide, including 2,715 in China alone with more than 78,000 infected cases so far.
Technical cues – FTSE 100 and FTSE 250 Index
At the time of writing (as on February 27th, 2020 at 11:04 AM GMT), the UK benchmark large-cap index FTSE 100 was trading approximately 150.0 points or 2.13% lower at 6,889.85 and tested a level, which was last witnessed on January 30th, 2019; also the YoY return of the index turned negative to 1.52%.
Also, during the day trading hours before the market close, the FTSE 100 index registered a new 52-week low of 6,849.85. At the current price, the index traded steeply below 5-day, 10-day, 20-day, 30-day, 50-day, 60-day, 90-day, 200-day simple moving averages (SMAs), which typically reflects a bearish trend in the underlying. Also, the Price/200-day SMA ratio stood at 0.93x, which indicates that the index is trading approximately 7% below its crucial 200-day support level, a highly unfavourable trend. Also, the moving average convergence divergence line is falling sharply against the 9-day EMA signal line; also, the difference between 12-day EMA and 26-day EMA is negative, which is also an unfavourable indicator.
At the same time, the mid-cap gauge FTSE 250 index too has tumbled 553.51 points or 2.68% to 20,069.51, however, YoY return still was hovering in positive territory (up 7.02%). However, the FTSE 250 index at the present level traded well below its short-term as well as long-term support levels of 5-day, 10-day, 20-day, 30-day, 50-day, 90-day, 100-day and 200-day SMAs, a bearish technical trend. The 14-day and 9-day Relative Strength Index hovering in sharply oversold territory as it is oscillating below 30, which is typically considered as a steep oversold zone for an underlying.