AUS
NZ
UK
CA
USA
IND
As tumultuous 2019 ended on a positive note, a comparison is bound to be drawn in terms of annual returns as compared to the previous year. 2019 witnessed large, sudden swings in the equity market globally, however, a vast majority of volatility in the UK stock market or in the FTSE stocks was fuelled by political uncertainties, Brexit fog and big swings in the British currency "GBP".
Nevertheless, amidst a lot of sharp ups and downs, UKâs broader equity index the FTSE 100 index surged 17.32% Â in 2019 vs 8.7% losses it had accumulated in 2018. The mid-cap index of the UK market, the FTSE 250 leapt up more than 25% in 2019, against a 15.56% plunge it recorded in the previous financial year.
However, here in this piece of research, the big talking point is the number of FTSE stocks that handed out Multibagger returns in 2019.
In total just 13 FTSE All-Share stocks generated Multibagger returns in 2019 while, in contrast, there was not a single FTSE All-Share stock that had delivered a Multibagger return in 2018. The stock of Ocado Group Plc (LON:OCDO) was the highest FTSE All-Share gainer in 2018, which delivered approximately 98.9% in 2018.
2019 was far better than the previous year. Some of stocks that handed multi-bagger returns in 2019 include names like Luceco PLC (LON:LUCE), Future PLC (LON:FUTR), Pets at Home Group PLC (LON:PETS), JD Sports Fashion PLC (LON: JD.), Dunelm Group PLC (LON:DNLM), Reach PLC (LON:RCH), Rank Group PLC (LON:RNK), Games Workshop Group PLC and many more.
Lists of all 13-FTSE All-Share Multibagger in 2019.
| S.No | Identifier (RIC) | Company Name | GICS Sector Name | Total Return (2018-12-31:2019-12-31) | Price %Chg. -1 Month | YTD Price PCT Change (2020) | Dividend Yield (2020) |
| 1 | LUCEL.L | Luceco PLC | Industrials | 268.8% | 15.9% | 19.0% | 0.8% |
| 2 | FUTR.L | Future PLC | Communication Services | 203.3% | -19.6% | -19.7% | 0.1% |
| 3 | PETSP.L | Pets at Home Group PLC | Consumer Discretionary | 150.9% | 9.9% | 9.7% | 2.4% |
| 4 | JD.L | JD Sports Fashion PLC | Consumer Discretionary | 140.8% | 4.9% | 2.3% | 0.2% |
| 5 | DNLM.L | Dunelm Group PLC | Consumer Discretionary | 129.5% | 6.5% | 4.9% | 2.3% |
| 6 | RCH.L | Reach PLC | Communication Services | 122.6% | 12.0% | 14.7% | 4.0% |
| 7 | SPT.L | Spirent Communications plc | Information Technology | 117.4% | -4.1% | -12.5% | 1.7% |
| 8 | IWG.L | IWG Plc | Real Estate | 112.1% | 2.7% | 2.2% | 1.5% |
| 9 | RNK.L | Rank Group PLC | Consumer Discretionary | 110.0% | 9.8% | 9.0% | 2.7% |
| 10 | GAW.L | Games Workshop Group PLC | Consumer Discretionary | 108.4% | 15.3% | 17.6% | 1.9% |
| 11 | GNC.L | Greencore Group PLC | Consumer Staples | 102.8% | -8.2% | -10.6% | 2.6% |
| 12 | SCTS.L | Softcat PLC | Information Technology | 101.8% | 5.7% | 5.9% | 1.2% |
| 13 | POG.L | Petropavlovsk PLC | Materials | 101.6% | 37.0% | 36.6% | NA |
*Source: Thomson Reuters.
Although, out of these 13 FTSE All-Share constituent stocks, there was only single FTSE 100 multibagger in 2019, which is JD Sports Fashion PLC (LON: JD.) a consumer discretionary industry group company with an outstanding market capitalisation of £8.33bn. Shares of this FTSE 100 multibagger company surged ~ 140.8% in 2019 and turned its shareholders wealthier by 1.4x against 2018.
There were 9 out of 13 FTSE Multibagger stocks in 2019, which were constituent stocks of the UK's mid-cap index FTSE 250. This reflects that mid-cap counter had handed higher gems in 2019 against large-cap FTSE 100. Mid-cap stocks, those which turned out be multibaggers include names like Future PLC (up 203.2%), Pets at Home Group PLC (up 150.09%), Dunelm Group PLC (up 129.5%), Spirent Communications plc (up 117.4%), IWG Plc (112.1%), Rank Group PLC (up 110.0%), Games Workshop Group PLC (up 108.4%), Greencore Group PLC (up 102.8%), and Softcat Plc (up 101.8%).
And, there were only 3 small-cap FTSE multibaggers in 2019, including names like Luceco PLC (up 268.8%), Reach PLC (up 122.6%) and Petropavlovsk PLC (up 101.6%).
Companies belonging to consumer discretionary sector performed quite well in 2019, as 5 out of 13 FTSE All-Share multibagger list for 2019 belongs to consumer discretionary arena, followed by information technology, communication services, industrials, materials and consumer staples.
Despite a solid return recorded by these companies in 2019, 10 out of 13 FTSE Multibagger stocks of 2019, extended their gains in 2020 as well. As these companies have so far reported a positive price percentage return on a Year-To-Date basis.
Companies like Petropavlovsk PLC, Luceco PLC, Games Workshop Group PLC, and Reach PLC have delivered more than 10% return on a YTD basis, which suggests rally in those has not yet ended.
Will 2020 will be better than the previous year?
It is widely perceived that 2020 is going to be the year for UK equities, as global portfolio investors are bullish on the FTSE stock performance this time around. Also, political stability came back in Britain after a stocking victory of Boris Johnson-led conservatives and the first round of Brexit was delivered too. These were two major events, which brought humongous volatility in 2019. Also, global investors believe that UK equities are trading at a relatively lower valuation than there global peer companies and also offering lucrative income stocks with significantly higher yields.
So, we do believe that 2020 will hand over more multibagger stocks against corresponding previous financial year. However, a comprehensive trade agreement between the UK and EU would play a vital role in this direction and this could be the crucial UK equity market driver in 2020.
