2013 started in sparkling form on the stock markets. Actually the FTSE100 (up 6.43% in Jan) beat NASDAQ (up ‘just’ 4.1%). I read this was the best start to a year for 25 years. Even 1st Feb 13 has seen extraordinary gains. They call it ‘The Great Rotation’ as investors move from bonds and ‘safe’ investments (which currently pay peanuts) to more risky equities. Of course, the mere movement is self fulfilling - driving share prices up as ‘demand exceeds supply’. It always ends in tears – it’s just ‘when?’ that is in question! But let’s enjoy the ride for the moment.
FTSE Hardware was up nearly 13% - mostly on the back of its largest constituent ARM. Similarly, the FTSE Mobile Index was up 11.4% mainly due to a sparkling month for Vodafone. Fixed Line Telecomm was up 7.3% in Jan and I suspect will perform well too in Feb as BT is up a massive 6.5% on 1st Feb on well received Q3 results this morning. See BT Global Services makes Q3 profits gain. So that’s a near 15% gain in BT shares YTD. Given that BT is about the most widely held share by retail investors, you can see why they want more equities right now.
In comparison the FTSE SCS Index (which most closely mirrors the SITS companies in the UK that we follow) rose by a ‘mere’ 5%.
It was another month where the Top Quartile produced a stellar performance but the Bottom Quartile was quite appalling.
The UK Top Performer Award went to online marketing services exchange, Blur Group– up a massive 88%. It was a rare AIM IPO in Q4 2012 and has done mega well since. See our most recent IndustryViews Quoted Sector 2012 Review. Followed by WANDisco (up 48% - See Further positive signs from Wandisco) and Promethean World (up 47% - more a recovery from the depths). Can’t remember when the top three had such massive rises.
Conversely, K3 sunk 25% as it issued a profits warning and Quindell, which has been at the top of the rankings in many months recently, sank by 20%. It was probably more of a correction/profit taking as it had issued a buoyant update. EMIS was also off 17% as it also issued a revenue and profits warning.
Internationally, many column inches were given to Apple which was down another 14% in January – adding to a run of dives which has seen its stock down 35% since the $705 high in Sept 12. See Apple – the bears win. I haven’t sold my Apple shares though. The last time I sold was in 2009 when I panicked when Apple shares halved to c$100. Even with the recent falls, Apple today is $453.
Dell rose 31% on those ‘take private’ rumours (See – Dell buyout on Monday– and work back) and Unisys staged a much needed recovery to rise 28% in Jan. See Unisys completes a year of ups and downs. Infosys also put on 25%. See Infosys holds its own.
Hold on for another exciting ride in February!