An Easter-Egg Hunt from the FTSE 100 Basket

A typical Easter Egg hunt in a stock market would mean identifying and investing in the businesses with vital growth catalysts. In this article, we have restricted our Easter Egg hunt to FTSE 100 basket. The FTSE 100 or Footsie intends to portray a broader picture of the UK market. The businesses included in the FTSE 100 basket have a global presence and are ranked in order of their market capitalisations.

The top 25 businesses are considered as heavy-weights of the index. Price fluctuations in the securities of these businesses would determine the course of FTSE 100. The FTSE 100 index is also used by institutional investors as a guide for diversification of their portfolio. We have restricted our hunt to this basket because it has premium listings, in which chances of price manipulations and other malpractices are very slight.

Another reason why FTSE 100 attracts these investors is liquidity. With liquidity, buying and selling of securities are easier. Though the markets are not always efficient, but businesses which are constituent of the FTSE 100 index are priced accordingly. So, the challenge lies in identifying the stocks.

The advantage we have with us is we are not alone in the hunt; the FTSE 100 basket attracts most of the institutional investors who are buying and selling securities in large volumes. These institutional investors employ industry analysts, which deep dive into the financial markets and come up with insights, which help in making informed decisions. These investors are usually hedge funds, pension funds, mutual funds, insurance firms and many others. This can give us an idea of where the traffic is heading.

In this article, we will discuss some stocks from various sectors based on their resilient business models, big returns, volume, and market capitalisation. Most of these businesses had yielded double- digit return on a YTD scale, at a time when the economic impact of Covid-19 was at its peak.

• Ocado Group Plc

Consumer Services group, Ocado Group Plc (LON:OCDO) is a Food & Drug Retailer. Ocado delivered a price return of 96.40 per cent in the last one year. On a Year to Date (YTD) basis, the stock delivered a price return of 73.48 per cent. The company’s share prices have soared rapidly, and the market capitalisation has gone up by nearly 96 per cent in the last one year.

(Source: Thomson Reuters)

On 4th June 2020, while writing at 11:38 AM, before the market close, Ocado Group Plc’s shares were marginally up by 0.96 per cent against its previous day closing price; trading at GBX 2,180. The volume was hovering around 544,562 while writing, which means there is enough liquidity in terms of buyers and sellers.

The stock's 52 weeks High and Low was GBX 2,229.00 /GBX 1,064.00. The beta of the company stood at 1.09, indicating higher volatility as compared to the benchmark index. Ocado Group Plc’s market capitalisation stood at £15,604.58 million.

• Pennon Group Plc

Utilities group, Pennon Group Plc (LON:PNN) is into the business of water and waste management. Pennon Group delivered a price return of 64.23 per cent in the last one year. On a Year to Date (YTD) basis, the stock delivered a price return of 16.22 per cent. The company’s share prices have soared swiftly, and the market capitalisation has gone up by nearly 64 per cent in last one year.

(Source: Thomson Reuters)

On 4th June 2020, while writing at 11:46 AM, before the market close, Pennon Group Plc’s shares were marginally down by 3.44 per cent against its previous day closing price; trading at GBX 1,147.7. The volume was hovering around 592,114 while writing, which means there is enough liquidity in terms of buyers and sellers.

The stock's 52 weeks High and Low was GBX 1,202.50 /GBX 697.80. The beta of the company stood at 0.40, indicating lesser volatility as compared to the benchmark index. Pennon Group Plc’s market capitalisation stood at £5,022.91 million.

• London Stock Exchange Group Plc

London Stock Exchange Group Plc (LON:LSE) is a London, United Kingdom-headquartered company which provides infrastructure to facilitate the trade of equity, ETF, bonds, and other securities in the global financial markets

London Stock Exchange Group delivered a price return of 55.66 per cent in the last one year. On a Year to Date (YTD) basis, the stock delivered a price return of 7.14 per cent. The company’s share prices have soared, and the market capitalisation has gone up by nearly 55 per cent in the last one year.

(Source: Thomson Reuters)

On 4th June 2020, while writing at 11:56 AM, before the market close, London Stock Exchange Group Plc’s shares were marginally up by 0.68 per cent against its previous day closing price; trading at GBX 8,294. The volume was hovering around 93,181 while writing.

The stock's 52 weeks High and Low was GBX 8,542.00 /GBX 5,358. The beta of the company stood at 0.56, indicating lesser volatility as compared to the benchmark index. London Stock Exchange Group Plc’s market capitalisation stood at £ 28,994.39 million.

• Hikma Pharmaceuticals Plc

Hikma Pharmaceuticals Plc (LON:HIK) is the United Kingdom-based pharmaceuticals and biotechnology company. Hikma Pharmaceuticals delivered a price return of 50.20 per cent in the last one year. On a Year to Date (YTD) basis, the stock delivered a price return of 21.86 per cent. The company’s share prices have soared, and the market capitalisation has gone up by nearly 50 per cent in the last one year.

(Source: Thomson Reuters)

On 4th June 2020, while writing at 12:03 PM, before the market close, Hikma Pharmaceuticals Plc’s shares were marginally down by 0.74 per cent against its previous day closing price; trading at GBX 2,399. The volume was hovering around 260,966 while writing, which means there is enough liquidity in terms of buyers and sellers.

The stock's 52 weeks High and Low was GBX 2,575.00 /GBX 1,593.00. The beta of the company stood at 1.09, indicating higher volatility as compared to the benchmark index. Hikma Pharmaceuticals Plc’s market capitalisation stood at £ 5,882.27 million.

• Scottish Mortgage Investment Trust Plc

Investment trust, Scottish Mortgage Investment Trust Plc (LON:SMT) aims to maximise the returns and dividend growth for investors by investing in various types of securities across the globe.

Scottish Mortgage Investment Trust delivered a price return of 49.85 per cent in the last one year. On a Year to Date (YTD) basis, the stock delivered a price return of 28.24 per cent. The company’s share prices have soared drastically, which means the market capitalisation has gone up by nearly 50 per cent in the last one year.

(Source: Thomson Reuters)

On 4th June 2020, while writing at 12:17 PM, before the market close, Scottish Mortgage Investment Trust Plc’s shares were marginally down by 0.27 per cent against its previous day closing price; trading at GBX 747.50. The volume was hovering around 1,481,264 while writing, which means there is enough liquidity in terms of buyers and sellers.

The stock's 52 weeks High and Low was GBX 751.50 /GBX 468.40. The beta of the company stood at 0.76, indicating lesser volatility as compared to the benchmark index. Scottish Mortgage Investment Trust Plc’s market capitalisation stood at £ 11,027.40 million.