We finish our look at the best and worst performing shares in the FTSE 100 and FTSE 250 so far this year, with the underperformers in the more UK focused FTSE 250.
FTSE fallers so far in 2021
As a benchmark, at the time of writing the FTSE 250 was up by around 9.5% year to date.
Although some investment trusts are amongst the leading fallers, for this article we concentrate on individual companies starting with AO World; the online electrical products group whose shares are down by 40%. The group initially benefitted from the pandemic with a strong recovery in the share price over the second half of 2020. However, a trading update in January warned of higher costs and the latest update in April (although more positive) received a rather lukewarm response, with some commentators suggesting that the valuation still looked a little stretched.
Credit products group Provident Financials’ shares are down by around 20% reflecting on an investigation by the Financial Conduct Authority and an operational review by the company which will lead to the closure of its doorstep lending business.
Hiscox; the insurance company are down by 17% as legal disputes over cover relating to the pandemic and an outlook for the year ahead, which was not as upbeat as expected by some analysts has led to a steady decline so far this year. A first quarter update on May 5 reported a rise in written premiums and led to a small rise in the share price.
Mining group Petropavlovsk shares have fallen by around 15% reflecting on a fall in the gold price and news that the group expect lower gold output for the year ahead.
Coats Group, the textile company founded in 1909 is down by around 12%. Results in early March announced lower profits and despite restarting the dividend the market appear to be concentrating on companies in other sectors, with greater growth or recovery potential.
Finally, we move to oil exploration group Cairn Energy, with operations in The North Sea and Senegal. The group recently announced the sale of some of its North Sea assets, but at a lower price than expected, along with the purchase of oil fields in Egypt. There was a net loss of $394 million for 2020, as a result of lower production and energy prices.
After 20 years at The Share Centre this is likely to be my last article for the website, if you have been reading over the years then may I take this opportunity in wishing you all the very best for the future.
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.