Monthly momentum update

A quick look at how the shares highlighted in our momentum strategy have performed.

The strategy has had a mixed month so far, with most of those highlighted seeing share price declines. Particularly noticeable was AstraZeneca, down 8.75% after the Pfizer bid was kicked into the long grass (for now, at least). This indicates an important consideration – some of those shares with a strong performance will have been bolstered by bid talk, and if the bid talk ceases the rally in the share price can rapidly evaporate.

Company

Share Price

% Return

  1 May 21 May  
Evraz 98 100.6 2.65%
Heritage Oil  315 314.8 -0.06%
Investec 518 510 -1.54%
Centamin 64.05 60.25 -5.93%
Rank Group 159.1 157.8 -0.82%
JD Sports Fashion 1752 1681 -4.05%
AstraZeneca 4815 4393.5 -8.75%
RSA Insurance Group 487.5 489.6 0.43%
Al Noor Hospitals Group 1028 993.5 -3.36%
Bank of Georgia Holdings 2678 2565 -4.22%
  Average return: -2.57%

 

I will provide an update on this towards the end of the month, and then run the momentum screen again at the beginning of June to identify those companies with a strong return over the April-May period.

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