4 FTSE 100 Outperformers in January 2020

• FTSE 100 index slumped approximately 3.35% in January’20.
• 36 out of FTSE 100 constituents traded positive in January’20.
• 32 out of FTSE 100 constituents traded January’20 above their long-term 200-day SMA
• Persimmon PLC, BAE Systems PLC and Taylor Wimpey PLC delivered a return above 10% each
• NMC Health PLC, Tui AG and BT Group PLC among the worst FTSE 100 counters in January’20.

January 2020 was a tumultuous one, comprised of several good and bad pieces of news. Good news is, finally, Britain has crashed out of the European Union as on January 31, 2020 and negated all the speculations regarding a no-deal Brexit, which had brought a lot of uncertainties to the UK market since past three and half years. Also, a phase-1 trade deal signed between two world’s large economies, US and China, had a significant weightage on the global economic growth and fuelled high volatilities in the global equity markets in 2019.

However, the outbreak of Coronavirus in China and now its spread in over more than 24 countries, has materially impacted equity performance globally in January 2020 with the FTSE 100 index ending the month approximately 3.3% lower, the S&P 500 ended marginally lower in the same month, and the MSCI World Price Index dragged approximately 0.58% during the same period. This reflects that major developed markets underperformed in January 2020, which started with great pomp and show.

Despite a broader downtrend in the benchmark indices, there were total 36 out of FTSE 100 constituent stocks, which traded in January 2020 on the positive side.

List of FTSE 100 stocks which traded in January against the broader trend in the UK market:

Source: Thomson Reuters.

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Let's discuss top-4 FTSE 100 outperformers in January 2020.

Persimmon PLC:  FTSE 100 constituent LON: PSN is a United Kingdom-based Home Construction company. The £9.8 billion market-capitalisation company's stocks surged approximately 13% in January 2020 whereas its benchmark FTSE 100 index declined approximately 3.0% in the same time period. The relative outperformance of PSN stock against its benchmark index is approximately 16%.

The group is engaged in house building within the UK and holds key brands like Charles Church, Persimmon Homes and Westbury Partnerships. The group offers a variety of homes ranging from family homes to studio apartments across 380 locations under the brand name, Persimmon Homes.

At the time of writing (as on February 04, 2020, at 12:45 PM GMT), PSN shares traded approximately 48 points or 1.55% higher at GBX 3,142.0 and at the current market price, its shares traded above its long-term crucial support level of the 200-day simple moving average price of GBX 2,894.7. Price/ 200-SMA ratio stood at 1.08x, which a positive technical measure. Also, an underlying security’s price above its 200-day SMA, typically considered as a favourable long-term trend in the stock.

BAE Systems PLC: United Kingdom-headquartered LON: BA. is a defence, aerospace and security company. The £20.58 billion market-cap company is a constituent of the UK large-cap blue-chip index FTSE 100. Its shares have leapt up approximately 12% in January 2020, and relative price performance between the company and its benchmark index stood at 15.1%.

At the time of writing (as on February 04, 2020, at 12:45 PM GMT), BA. shares traded approximately 2.80 points or 0.44% higher to GBX 644.80. Also, the stock is in the green for the second successive day.

From the technical standpoint, its shares traded above its crucial long-term and short-term moving averages of 50-day and 200-day simple moving averages, which is typically considered to be a positive technical trend in the stock. Price/200-day SMA ratio of the BA.’s stocks stood at 1.03, typically considered to be a positive technical trend in the stock.

Taylor Wimpey PLC: The £7.19 billion market-cap LON: TW. is a United Kingdom-headquartered residential developer. Its shares increased approximately 11.2% with respect to price in January 2020 and outperformed the broader index FTSE 100 by 14.5%. The outstanding market-capitalisation of the company ranks it among the large-caps listed and traded on the London Stock Exchange and a constituent company of the FTSE 100 index.

At the time of writing (as on February 04, 2020, at 12:45 PM GMT), its shares extended gains for the fourth consecutive session and traded approximately 3.42 points or 1.56% higher at GBX 222.52.

Also, from the technical standpoint, its shares traded above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day and 200-day simple moving averages, which is typically considered as a favourable trend in the stock. The Price/200-day SMA stood at 1.06x, another positive measure. However, 14-day and 9-day Relative Strength Index of the stock were hovering near the overbought zone.

Coca Cola HBC AG:  London Stock Exchange-traded LON: CCH is a Switzerland-based bottler of Coca-Cola products. The group produces, sells and distributes beverages brands. The £10.18 billion market-cap company is a constituent of the UK’s broader index FTSE 100 index.

Shares of CCH surged approximately 8.6% in January 2020 and outperformed broader benchmark FTSE 100 by 11.9%. At the time of writing (as on February 04, 2020, at 12:45 PM GMT), its shares extended gains for the second day in a row and traded up by 25.0 points or 0.89% higher at GBX 2,829.0.

Also, at the current price, its shares traded above its 10-day, 20-day, 50-day and 200-day simple moving averages, a positive technical measure. Price/200-day SMA ratio of its stock stood at 1.03, which is a positive technical measure in an underlying. 14-day and 9-day Relative Strength Indices of the stock were hovering in the neutral zone.

The 4 FTSE 100 outperformers, which we have just discussed above, are all trading in green in the February 04, 2020 trading session (before the market close) and above their short-term and long-term crucial support levels of 50-day and 200-day simple moving averages, which reflects these stocks are extending gains of previous month in February 2020 as well.