Following on from our article on this year’s risers in the FTSE 100, we thought for the sake of balance to comment on the worst performing shares so far this year.
FTSE Laggards so far in 2021
As a benchmark the FTSE 100 is up by around 5% so far this year.
Leading the decline are three companies who are down by around 20%; The London Stock Exchange, Polymetal and Fresnillo.
Starting with the London Stock Exchange, whose shares hit an all-time high in February but have since fallen back, possibly on investors taking some profits on the back of disappointing results in early March. The numbers were below market expectations with regard to profit and there were higher costs, and guidance for costs was raised as a result of acquisitions and ongoing investment.
Polymetal and Fresnillo; two of the less well-known FTSE companies who are involved in mining precious metals, most notably gold and silver have been affected by falling precious metal prices. This of course is not unusual for companies in that sector as there will always be a high correlation with the underlying price of the metals they are mining. Fresnillo which operates silver mines in Mexico has also recently pointed to higher costs and were cautious on their operating outlook for the year ahead.
Just Eat, the food delivery website operator whose shares were first listed in January 2020 have fallen by 19%. The group which is still in the early stages of establishing itself and is loss-making has been out of favour as investors concentrated on competition concerns and questions over labour practices in the sector. Yes, there has been surging demand over the pandemic, but to help it fight off the competition the group raised more money in February and has been spending in order to expand and consolidate its position.
Finally - Avast a security software group which is down by 15%. The shares last year benefitted from the increasing numbers of people working from home and investors may be thinking that will now start to fall off, as we hopefully start to emerge back to a more normal lifestyle. Results showed that billings growth had slowed over the second half of 2020 and that growth this year would be weighted to the second half.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.