Finance Choices
Oil prices weigh on August market
The UK markets had a quiet August by recent standards, as rising oil prices and inflation weighed on traders' minds.
Halifax reports that over the last month there was a 0.4 per cent increase in total returns for the FTSE All Share Index, the weakest August performance since 2001.
However, the return was still above the long-run average increase of 0.3 per cent, the bank adds.
"August is traditionally a quiet month on the markets, but the FTSE continued to move upwards having been bolstered by mergers and acquisitions activity among companies such as BPB, along with positive earnings figures filtering through from the end of July and a cut in interest rates," said John Bearman, head of UK equities at Halifax.
"However, August also saw UK inflation unexpectedly hit an eight-year high as oil prices touched $65 a barrel, both issues which may well weigh on the mind of investors in the coming months, especially in the wake of Hurricane Katrina which has affected production in the US."
Hilton was the best performing stock last month in terms of total shareholder returns.
The stock increased its returns by 9.4 per cent on the back of a slight rise in profits for the first half of the year and a series of broker upgrades.
The sector that produced the best returns was Auto & Parts, with an increase in total shareholder returns of ten per cent.
Car dealer Pendragon led the charge, with 19 per cent rise in first-half profits announced during the month.
At the other end of the scale, Halifax reports that fund manager Amvescap was the worst performing stock - with a 12 per cent drop in returns - while Health and Life Assurance were the joint worst performing sectors last month. Both saw their overall total shareholder return fall two per cent.
Halifax reports that over the last month there was a 0.4 per cent increase in total returns for the FTSE All Share Index, the weakest August performance since 2001.
However, the return was still above the long-run average increase of 0.3 per cent, the bank adds.
"August is traditionally a quiet month on the markets, but the FTSE continued to move upwards having been bolstered by mergers and acquisitions activity among companies such as BPB, along with positive earnings figures filtering through from the end of July and a cut in interest rates," said John Bearman, head of UK equities at Halifax.
"However, August also saw UK inflation unexpectedly hit an eight-year high as oil prices touched $65 a barrel, both issues which may well weigh on the mind of investors in the coming months, especially in the wake of Hurricane Katrina which has affected production in the US."
Hilton was the best performing stock last month in terms of total shareholder returns.
The stock increased its returns by 9.4 per cent on the back of a slight rise in profits for the first half of the year and a series of broker upgrades.
The sector that produced the best returns was Auto & Parts, with an increase in total shareholder returns of ten per cent.
Car dealer Pendragon led the charge, with 19 per cent rise in first-half profits announced during the month.
At the other end of the scale, Halifax reports that fund manager Amvescap was the worst performing stock - with a 12 per cent drop in returns - while Health and Life Assurance were the joint worst performing sectors last month. Both saw their overall total shareholder return fall two per cent.
posted by Bruce Wayne at 6:51 AM
Oil prices weigh on August market
5 Comments:
I expect the price to top £1.00 per litre very shortly!
They need to change the signs outside first?
Shell and Esso are going around this part of the world adding an extra digit to the pricing boards.
Over here in Spain it is hovering around a Euro
Minimum in Spain is 0,859 Euros
Average is 0,977 Euros
Highest is 1,030 Euros
All prices are per litre
I think it's going to be an expensive winter. From Bloomberg news:
In the past five years, pump prices have averaged about 62 cents higher than Nymex futures, Bloomberg data show. Based on today's record futures price, the average cost to U.S. consumers may reach $3.19 a gallon.
Now it's getting silly - have just spotted 99.9p for regular diesel at a BP garage 2 miles out of Peterborough (Stanground if anyone know's it)
Just down the road an Esso with 98.9p on the board. Worryingly still they have just ahd a new board put up, with the prices in LED's, and they have space to display 100.9 and so on !!!
I was going to fill up at Tesco with their relatively good value 97.9p but half the pumps were coned off. I can wait till Wednesday anyway !
I read a bit, and it was only a bit in todays Mirror - apparently Blair is 'pressuring' Brown to do something, but he's resisiting apparently.
Post a Comment
<< Home