FTSE 100 and FTSE 250 Quarterly Review – September 2017

After market close on 30 August 2017 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 15 September 2017 and take effect from the start of trading on Monday, 18 September 2017.

FTSE 100

Joining: NMC Health [NMC], Berkeley Group Holdings [BKG]

Leaving: Royal Mail [RMG], Provident Financial [PFG]

FTSE 250

Joining: Royal Mail [RMG], Provident Financial [PFG], Alfa Financial Software Holdings [ALFA], 888 Holdings [888], Sequoia Economic Infrastructure Income Fund [SEQ]

Leaving: NMC Health [NMC], Berkeley Group Holdings [BKG], Northgate [NTG], Petra Diamonds [PDL], Carillion [CLLN]

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Financial Services sector monthly seasonality analysis

The 2013 edition of the Almanac looks at the historic monthly performance of the FTSE 350 sectors. Here we look at the Financial Services sector.

The following chart plots the average out-performance of the FTSE 350 Financial Services sector over the FTSE 100 Index by month since 1999. For example, since 1999 on average the Financial Services sector has out-performed the FTSE 100 Index by 2.3 percentage points in January.

Observations:

  1. The strongest months are January and March – the sector has under-performed the market only four times in the past 13 years in January.
  2. The weakest month has been February – the sector has out-performed the market only five times in this month in the last 13 years.

The 23 stocks in the FTSE 350 Financial Services sector [NMX8770] are-

3i Group [III] Investec [INVP]
Aberdeen Asset Management [ADN] IP Group [IPO]
Ashmore Group [ASHM] Jupiter Fund Management [JUP]
Brewin Dolphin Holdings [BRW] London Stock Exchange Group [LSE]
Close Brothers Group [CBG] Man Group [EMG]
F&C Asset Management [FCAM] Paragon Group of Companies (The) [PAG]
Hargreaves Lansdown [HL.] Provident Financial [PFG]
Henderson Group [HGG] Rathbone Brothers [RAT]
ICAP [IAP] Schroders [SDR]
IG Group Holdings [IGG] SVG Capital [SVI]
Intermediate Capital Group [ICP] Tullett Prebon [TLPR]
International Personal Finance [IPF]
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Shares that like/dislike February

Shares that like February

The following table lists the five FTSE 350 shares that have the best historic returns in February over the last ten years. For example, Fidessa has an average return of 14.9% for the month of February. Each stock has risen in nine of the past ten years in February.

Company TIDM Avg(%)
Fidessa Group FDSA 14.9
Imagination Technologies Group IMG 13.5
Croda International CRDA 9.6
Xstrata XTA 8.3
Provident Financial PFG 7.0

A portfolio of these five stocks would have out-performed the FTSE 350 Index in every February over the last ten years with an average out-performance of 9.5 percentage points each February.

Shares that dislike February

The following table lists the five FTSE 350 shares that have the worst historic returns in February over the last ten years. For example, AstraZeneca has an average return of -3.5% for the month of February. Each stock has fallen in at least seven of the past ten years in February.

Company TIDM Avg(%)
Greene King GNK -1.4
AVEVA Group AVV -1.5
Vodafone Group VOD -1.7
BTG BTG -2.5
AstraZeneca AZN -3.5

A portfolio of these five stocks would have under-performed the FTSE 350 Index in every February over the last ten years with an average under-performance of 3.3 percentage points each February.

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