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.
Telecommunications also featured in the list of the top five worst performing sectors, with fixed line telecommunications providing the most disappointing return of the lot (-18.3%).
Yearsley admits that he was somewhat surprised to learn the telecoms sector was the most dismal performer of 2016.
“There are only a couple of companies in that sector, with BT being the biggest, so I suspect the numbers are skewed slightly. And BT had a “very poor year,” he added.
Worries about the British telecom giant’s pension scheme deficit and the potential legal separation of its Openreach business dominated headlines, wreaked havoc on its share price, which was down close to 30% at its lowest point.
However, against a political and economic backdrop that remains uncertain, BT’s cash flow characteristics and its “supportive dividend,” make it “not such a bad place to be” in the new year, said Yearsley.