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Highlights
- The Omicron variant of coronavirus has caused massive economic disruptions in the UK again.
- While some sectors have not been doing well due to the pandemic scare, others are more resilient and are performing well amid the economic turbulence.
- Stocks like commodity and travel have shown signs of recovery even during surging Covid cases in December, as per Reuters.
The Omicron variant of the coronavirus has created panic worldwide. The UK’s economy was already suffering from high inflation, soaring energy costs, and labour shortages. As the recovery process started, the economy was again struck with a series of pandemic-related restrictions due to the highly infectious new variant.
While some sectors have not been doing well due to the pandemic scare, others are more resilient and are performing well amid the economic turbulence. These robust sectors include banking, housing, and energy etc. Rising inflation levels have been beneficial for lenders, and the effect of inflation has been the smallest on commodities with inelastic demand, like tobacco and alcohol.
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The worst-hit sectors during the pandemic have been hospitality, travel, and tourism etc. These sectors have taken the brunt of the pandemic and have suffered from huge losses due to the lockdown restrictions. The UK government has stepped up and provided funding to support the hard-hit sectors, but it is still difficult to predict what’s in store for these sectors in the future as the possibility of further disruptions due to new variants can’t be ruled out as of now.
The stock market is bound to get impacted due to general economic trends like inflation and growth rate. Even though the UK stock market has performed well in 2021, what would happen this year can’t be predicted with certainty. However, stocks like commodity and travel have shown signs of recovery even during surging Covid cases in December, as per Reuters.
Let’s take a look at some of the UK stocks which may possibly recover this year.
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easyJet plc (LON: EZJ)
The market cap of British global low-cost airline group easyJet plc stands at £4,713.31 million and it has provided a negative return of -19.43% to its shareholders in the last one year as of 10 January 2022. easyJet plc is a constituent of the FTSE250 index and its shares closed at GBX 633.80 on 10 January 2022.
Jet2 PLC (LON: JET2)
The market cap of British international airline business Jet2 PLC stands at £2,712.79 million and it has provided a negative return of -5.25% to its shareholders in the last one year as of 10 January 2022. Jet2 plc constituent of the FTSE AIM UK 50 index and its shares closed at GBX 1,264.00 on 10 January 2022.
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International Consolidated Airlines Group S.A. (LON:IAG)
The market cap of global airline holding firm International Consolidated Airlines Group S.A. stands at £8,074.06 million and it has provided a return of 3.82% to its shareholders in the last one year as of 10 January 2022. International Consolidated Airlines Group S.A. is a constituent of the FTSE100-index and its shares closed at GBX 162.74 on 10 January 2022.
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Rio Tinto plc (LON: RIO)
The market cap of Anglo-Australian firm Rio Tinto plc, which is the second-largest metals and mining business across the globe, stands at £64,928.28 million and it has given a negative return of -17.56% to its shareholders in the last one year. Rio Tinto plc is a constituent of the FTSE100 index, and its shares closed at GBX 5,202.00 on 10 January 2022.
Polymetal International plc (LON: POLY)
The market cap of Anglo-Russian precious metals miner Polymetal International plc stands at £5,636.15 million and it has given a negative return of -32.79% to its shareholders in the last one year. Polymetal International plc is a constituent of the FTSE100 index, and its shares closed at GBX 1,190.00 on 10 January 2022.
