21st August 2015
A ‘frightful fortnight’ for the UK stockmarket has seen £160 billion wiped off the value of UK-listed companies.
Laith Khalaf, senior analyst at stockbroker Hargreaves Lansdown, said the FTSE 100 looks as though it is going to fall for the ninth consecutive day ‘barring a Lazurus-like recovery in the closing minutes of trading today’.
The FTSE All Share hasn’t fared any better, falling 7% since last Monday, which equates to around £160 billion wiped off the value of UK-listed companies.
‘It’s been a frightful fortnight for the FTSE, which has seen its losing streak stretch to nine consecutive days. Pension funds and private investors alike will be licking their wounds, and wondering when the sell-off is going to come to an end,’ he said.
Khalaf said China ‘is front and centre of the turmoil’ and companies with significant Asian revenues like Unilever and Standard Chartered have been hit ‘alongside the obvious commodity casualties in the mining sector’.
And he warned there may be further to go.
The sell-off may yet have further to run, particularly seeing as such a large part of the UK stockmarket is in thrall to capricious commodity prices,’ said Khalaf.
‘This is undoubtedly an uncomfortable period for investors, but it’s at times like these that it pays to keep your head.
‘Stockmarket corrections, like the one we are witnessing, present investors with an opportunity to put new money to work in the market at lower prices. No-one knows when this bout of angst will end, and stock prices may yet have further to fall. But when the market as a whole is fearful, it’s usually a good time to top up your holdings.’