By Rafael Matsunaga (Flickr) [CC BY 2.0] via Wikimedia Commons
From the 66 percent drop of Provident Financial in a day to Carillion dropping two-thirds of its value after three sessions, there was no shortage of drama in the stocks of the United Kingdom in 2017.
The biggest losers of last year have been marked by rapid and sensational declines, while the winners – which includes the 266 percent rally of Games Workshop – have been progressive triumphs.
No unifying theme has been observed. However, some analysts suggested a degree of complacency of investors and a shortage of foreign buyers under the looming shadow of Brexit may have intensified selloffs.
Chris Beauchamp, an IG market analyst, said during an interview that investors “maybe not quite so well prepared for the surprises,” because of the overall quietness in the stock markets. He noted that some funds would rather completely cut the losers than give the companies an opportunity to redeem themselves following profit warnings.
At the same time, according to Jasper Lawler, the London Capital Group’s senior market analyst, said the imminent departure of the United Kingdom from the European Union had prevented overseas fund managers who may have stepped in to purchase stocks at bargain prices in the past. Lawler said that it is making declines for individual stocks in the United Kingdom “specifically noticeable.”