The best and worst FTSE sectors in 2016 revealed
By Kristen McGachey, 3 Jan 17
New data from Financial Express Analytics reveals a stunning year for miners and oil companies and persistent trouble for telecoms and retailers.
Oil & gas producers and equipment and service providers also topped FE Analytics’ list, as the industry gained further momentum in the second half of 2016 following the first OPEC deal in eight years and Donald Trump’s victory in the US presidential contest. Overall, producers generated 61.01% of positive returns for investors; service providers, 59.83%.
However, Yearsley doesn’t anticipate mining and oil & gas companies will keep seeing 2016 levels of returns in the new year. “I would be surprised if you get the same level of returns this year,” he continued. “The latest Chinese data is pretty positive, which is good for these sectors, but the degree of positive returns we have seen in commodities and mining was a one-off since sentiment was so negative at the start of the year. There is no reason it shouldn’t be a good year for those sectors, however.”