Monthly momentum strategy

As per our monthly momentum strategy, we have looked at the FTSE 350 stocks with the biggest gains over the April – May period. The top 20 are listed below.

I will not go into detail for each stock, but there are three in this list that should be noted. Caracal, Heritage Oil and Smith & Nephew have all been the target of bid approaches. A similar situation was seen with AstraZeneca last month. These shares have been rapidly pushed higher, but if the bid fails to materialize, as happened with Astra, the shares can drop back. Thus I would look to exclude these from the strategy.


% gain

Caracal Energy 55.71%
Evraz 31.86%
Heritage Oil 25.20%
ITE Group 23.08%
Premier Oil 21.06%
Vedanta Resources 20.99%
InterContinental Hotels Group 20.70%
Cairn Energy 19.79%
Centamin 18.67%
International Personal Finance 16.16%
Shire 15.76%
EnQuest 15.15%
Imagination Technologies Group 14.89%
Smith & Nephew 14.08%
Go-Ahead Group 14.00%
Cineworld Group 13.44%
Perform Group 12.86%
Pearson 12.45%
Ladbrokes 12.37%
Tullow Oil 11.89%
Caledonia Investments 11.89%


We will look again at the performance of these in the middle of June.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.