First trading day of August

Tomorrow, Thursday, will be the first trading day (FTD) of August.

As explained in the 2013 edition of the Almanac, the market has a tendency to be strong on the FTD of a month. And this effect has been even more pronounced in recent years.

Since 1984, the FTSE 100 Index has risen on average 0.03% on the August FTD – ranking it 7th of all the monthly FTDs. The index has had a positive return on this day in 62% of years since 1984.

The following chart shows the returns for every August FTD since 1984.

First trading day of the FTSE 100 Index in August

 

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Shares that like/dislike August

Shares that like August

The following table lists the five FTSE 350 shares that have the best returns in August over the last ten years. For example, Fisher (James) & Sons has an average return of 10.1% for the month of August. Each stock has risen in at least nine of the past ten years in August – Fisher (James) & Sons is the only stock in the FTSE 350 whose shares have risen every August in the past ten years.

Company TIDM Avg(%)
Fisher (James) & Sons 10.1
Keller Group 5.2
Bunzl 5.1
Centrica 4.5
Tesco 3.1

A portfolio of these five stocks would have out-performed the FTSE 350 Index in August every year over the last ten years with an average out-performance of 4.9 percentage points each August.

Shares that dislike August

The following table lists the three FTSE 350 shares that have the worst returns in August over the last ten years. For example, Pennon Group has an average return of -3.2% for the month of August. All three stocks have fallen in at least eight of the past ten years in August.

Company TIDM Avg(%)
Pennon Group -3.2
Rio Tinto -2.6
Investec -1.7

A portfolio of these three stocks would have under-performed the FTSE 350 Index in August in eight of the  last ten years with an average under-performance of 3.1 percentage points each August.

 

 

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