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.

Company

% 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.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.