Sun shines on investors in June
01 July 2005
Source: HBOS press release
The FTSE All Share Index continued its above average performance in June, with a rise in total return of 3.4%, up from 1.5% in June 2004. This is the best performance for 15 years and compares with zero average growth for the month of June between 1986 and 2005.
Key Findings:
Company Performance
• Oil giant Shell was the best performing stock in terms of total shareholder returns (TSR) last month, with an increase of 13.7% (see Table 4a), as shareholders approved the merger of its dual organisation into one corporate entity.
• The poorest performing stocks in June were retail group Kingfisher, outsourcing specialist Capita and British Airways, all of which delivered a TSR of -4%.
• The best performing stock during the first half of the year was Allied Domecq. The drinks giant, which is set to be acquired by rival Pernod Ricard, delivered a TSR of 35% in the six months to June.
Sector Performance
• The best performing sector in June was Oil & Gas, which recorded a TSR of 9% on the back of rising crude oil prices (see Table 3a). Shareholders in oil giant Shell approved the merger of its dual organisation into one corporate entity, which will increase its market weighting.
• Steel & Other Metals was the poorest performing sector last month, delivering a TSR of -6%, despite a continued fall in exports from China (see Table 3c). The sector is dominated by Corus, which was demoted from the FTSE 100 index in the latest quarterly review.
• Electricity was the best performing sector during the first six months of the year, with a TSR of 25% (see Table 3b) while Household Goods & Textiles was the weakest sector, recording a TSR of -18%.
John Bearman, head of UK equities, said:
'The performance on the markets during June was much better than average, with the FTSE All Share delivering a 3.3% gain in total return, compared with zero average growth for June during the last 20 years. In particular, the Oil & Gas sector benefited from rising crude oil prices, which broke through $60 a barrel, and the Shell effect.'
Most Traded Stocks
• British Airways was the most traded stock during the first half of the year, with over 2.1 billion shares changing hands, followed by Allied Domecq at 1.9 billion
Value of Investments
• Since the start of the year Brent Oil has experienced the steepest rise in prices (39%), while the value of US Dollars fell 7%
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