FTSE 100 and FTSE 250 Quarterly Review – June 2017

After market close on 31 May 2017 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 16 June 2017 and take effect from the start of trading on Monday, 19 June 2017.

FTSE 100

Joining: G4S [GFS], Segro [SGRO]

Leaving: Hikma Pharmaceuticals [HIK], Intu Properties [INTU]

FTSE 250

Joining: Coats Group [COA], FDM Group Holdings [FDM]. Melrose Industries [MRO], Pershing Square Holdings[PSH], Sirius Minerals [SXX], TBC Bank Group [TBCG]

Leaving: Allied Minds [ALM], AO World [AO.], BH Macro (GBP) [BHMG], Debenhams [DEB], Keller [KLR], SVG Capital [SVI]

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Shares that like/dislike September

Shares that like September

The following table lists the five FTSE 350 shares that have the best returns in September over the last ten years. For example, Diploma has an average return of 6.3% for the month of September. Each stock has risen in at least eight of the past ten years in September – Diploma is the only stock in the FTSE 350 whose shares have risen nine times in September in the past ten years.

Company TIDM Avg(%)
Ashtead Group 8.4
Aberdeen Asset Management 8.0
JPMorgan Indian Investment Trust 6.6
Diploma 6.3
Carnival 4.1

Shares that dislike September

The following table lists the five FTSE 350 shares that have the worst returns in September over the last ten years. For example, Premier Farnell has an average return of -8.0% for the month of September. All five stocks have fallen in at least eight of the past ten years in September; Premier Farnell is the only stock in the FTSE 350 whose shares have fallen nine times in September in the past ten years.

Company TIDM Avg(%)
Premier Farnell -8.0
Pace -8.0
Compass Group -4.8
SVG Capital -3.7
Carpetright -3.7

Strategy

An equally-weighted portfolio of the above strong September stocks would have out-performed an equally-weighted portfolio of the above weak September stocks by an average of 12.3 percentage points in September for the past ten years.

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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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