Woodford: 40% of FTSE All Share in bear market


More than 40 per cent of the stocks in the FTSE All Share are in a bear market, having fallen more than 20 per cent since their high in the past year, says Woodford Investment Management.

Fears arose after the FTSE fell into a bear market last week, dropping more than 20 per cent from its high of more than 7,000, which it reached in April last year.

However, Mitchell Fraser-Jones, head of investment communications at Woodford Investment Management, says that at close of business yesterday 164 stocks were down more than 20 per cent.

Research from the asset manager showed that 27 stocks are down by more than 50 per cent based on their 52-week high.

“The average stock is 21.1 per cent below its 52-week high but more than a quarter of index stocks have actually risen in value since the market’s peak,” says Fraser-Jones in an investment note.

The data shows that 166 stocks are up since the height of the market, with 36 companies up more than 20 per cent.

“Market sell-offs such as the one we have witnessed at the start of this year, however, tend to be indiscriminate. Whilst this can be frustrating in the short term, it can also provide opportunity.”