Commodity stocks 'the new barometers of London equity'

clock

Commodity-based companies have overtaken financial services as the ‘bell-weather' of London equities, according to Fidelity UK Growth manager Tom Ewing.

Natural resources edged ahead of banks in FTSE 100 weighting in April, with around 16% of the blue-chip index now invested in mining and basic resources companies – slightly ahead of banking stocks. Furthermore, £100 in a FTSE 100 tracker would see £35 go into overall commodities, with just £23 invested in the wider financial services sector. “Although the financial sector is often viewed as a bell-weather of the UK stock market, companies with commodities at their core are now arguably more representative of the health of London equities,” Ewing says. However, Ewing believes the rise of...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read