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Highlights
- Since the beginning of 2022, the UK’s FTSE 100 index has lost around 4%.
- Despite that, the UK market has been performing relatively better than other global markets, including the US.
- The foremost issue faced by the investors is the soaring inflation levels, which have pushed the central banks to go for interest rate hikes.
The year 2022 hasn't been very kind to the UK stock market. But the market has still managed to stay afloat despite facing rough times lately. Since the beginning of the year, the UK's FTSE 100 index has lost around 4%, but even after that, it has performed relatively well compared to other global markets. A significant example of the same is the US's S&P 500 index tumbling by 20% in 2022.
The foremost issue the investors are facing is the soaring inflation levels, which have pushed the central bank to go for interest rate hikes and nudge the economy towards a recession instead of strengthening the markets. The UK and the US are also going for monetary policy tightening. But the silver lining amid this is the fact that the UK market is seen to be doing better than the US.
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Having said that, the investors in the UK are set to feel the pain of weakening their portfolios as the mid-cap FTSE 250 index has plummeted by around 21% in 2022 while several popular stocks have suffered even more significantly.
Currently, UK investors are unclear if they should invest in the stock market while it's bearish in hopes of gaining in the future or if they should stay put as the inflationary crisis may worsen. As the fears of a recession are looming over the UK, the earnings from the stock market may take a hit, further hurting investors.
As of 15 July, the UK's blue-chip FTSE 100 index was up by over 0.6% at around 11:30 AM (GMT+1), with a negative one-year return of -8.25%. Let's look at the 3 FTSE 100 volume leaders that investors may watch.
Lloyds Banking Group Plc (LON: LLOY)
The shares of the UK-based provider of financial services, Lloyds Banking Group Plc, rallied by 1.43% at 11:50 AM (GMT+1) on Friday and were trading at GBX 41.61. The FTSE 100 bank enjoyed a market cap of £28,158.15 as of Friday. The bank currently offers investors a dividend yield of 4.8% a year, and its EPS also lies in the positive zone, at 0.08.
But its YTD and one-year returns stand at -12.96% and -12.29%, respectively as of Friday.
Barclays plc (LON: BARC)
The shares of the globally operating banking company, Barclays plc, rallied by 2.05% at 11:57 AM (GMT+1) on Friday and were trading at GBX 148.52. BARC’s market cap stood at £23,902.54 as of 15 July. The bank currently offers investors a dividend yield of 4.0% a year, and its EPS also lies in the positive zone, at 0.38. BARC’s performance has depreciated lately, and its YTD and one-year returns at -20.55% and -12.95%, respectively.
Vodafone Group plc (LON: VOD)
The shares of the leading British telecom firm, Vodafone Group plc, rallied by 0.96% at 11:59 AM (GMT+1) on Friday and were trading at GBX 129.00. The FTSE 100 constituent enjoyed a market cap of £35,793.62 on Friday. Vodafone has enjoyed better luck lately with both YTD and one-year returns giving positive returns of 15.02% and 9.91%, respectively.
