Monday 20 February 2017

Life Insurance Sector Continues It’s Strong Start To 2017

Shares in the Life Insurance sector have been on a steady upward trajectory since the turn of the year, after a relatively static 2016 (apart from a Brexit blip). Leaders today were Standard Life, Prudential and Aviva as the pack went on rising.

Many analysts were of the opinion that Donald Trump’s policies were pointing to higher interest rates in the US, which would probably put a squeeze on insurance companies. But so far the opposite seems to be playing out.

A news piece on Sharecast just last week stated, “Traders cited comments from US president Trump during the afternoon saying he would have “something phenomenal” on taxes over the next two to three weeks as a reason for the uptick in ‘risk appetite’”. This lead to a bounce of Banking and Insurance stocks, and government bond yields, in the USA.

As for the UK Life Insurance sector , in the chart below you can see it is now trading above the 2016 highs and seems to have strength.

life-insurance

Aviva, one of the UK’s largest insurance companies is back on the rise. After correcting slightly in January, it’s now bouncing again and headed up above £5.00 per share.

aviva-share-price

Standard Life also seems to have its mojo back, with a sharp rise in February to a high of around £3.70 a share.

standard-life-share-price

Prudential is also following the sector trend, with a solid rise above 15.00 in December and holding that level ever since. Looking like it will break on, or at very least retest, the 2017 highs.

pru-share-price

As 2017 progresses and stance on interest rates becomes clearer, not just in the UK but also the USA, the sector may go through some bumpy patches. However, it could offer a nice dip to a support for any long term positions.



from http://www.livecharts.co.uk/livewire/2017/02/life-insurance-sector-continue-its-strong-start-to-2017/

Friday 17 February 2017

Can The FTSE Head Higher? BP, Fresnillo, and Bank Index Could Help Decide

As we head towards the end of another financial year in the UK, it’s time to look back at how the FTSE 100 has fared since our last article back here in September. At that time the US election was yet to happen, and I hinted that the main index would only head higher if the banks joined in.

Well, the banks did join in. Since then Barclays has added 50p to its share price, and Lloyds has gained circa 20%. But in my opinion one of the main catalysts to push the FTSE 100 beyond the 7000 mark was the BP share price heading up from 4.30p ish to over 5.20p a share. BP has pulled back since the middle of January, but certainly Oil was a huge help to the FTSE gaining some much needed momentum.

Mining stocks have also been flying high. Copper prices have been booming, along with most base metals. Stocks such as Rio Tinto (RIO), Fresnillo (FRES) and Anglo American (AAL) have all been very strong since December helping add some strength to the main UK index.

As you can see on the chart below the mining index has been on a solid upward trend for a year now. After being hit hard by falling metal prices for a number of previous years, this is a welcome relief for many mining stocks and related industries. Those companies who streamlined their business during the tough times will now be reaping the rewards of higher values.

mining-index

The Bank index shows a similar upward trend, which kicked in right after the vote to leave the European Union. Whilst this trend may falter somewhat as trouble looms over triggering Article 50, there should still be plenty headroom for a move higher in late 2017.

banking-index

So here we are, with the FTSE 100 around all-time highs, the Dow Jones index halfway to 21000, and everything is rosy. Maybe that is the time to be wary? Good times seldom last forever, and while this may not be the “top”, I’d be very surprised if there wasn’t a correction of sorts to shake out some money. Be safe, and be ready.



from http://www.livecharts.co.uk/livewire/2017/02/can-the-ftse-head-higher-bp-fresnillo-and-bank-index-could-help-decide/