Healthcare Weighed Down SPY while Johnson Matthey Lifted EWU
(Continued from Prior Part)
EWU gained 0.81%
The iShares MSCI United Kingdom ETF (EWU) continued its upward trend on Thursday, November 19, 2015, advancing 0.81%. 90 out of the 109 constituent stocks of the EWU yielded positive returns on the day. UK investors seemed buoyed as the world economies prepared for an anticipated December rate hike in the United States.
Key stocks
Stocks at the top of the EWU on November 19 were Johnson Matthey (JMAT-LON), Investec (INVP-LON), and Royal Mail (RMG-LON). These stocks gained 9.7%, 6.1%, and 4.9%, respectively, on the day. The graph above compares the stock price performances of Johnson Matthey with its peer company Croda International (CRDA-LON) since October 2015.
Johnson Matthey, involved in the production of specialty chemicals, rose on November 19 after it announced its plan to pay a special dividend to its shareholders after the sale of its two businesses. The special dividend amounts to 305 million pounds.
Meanwhile, Croda International gained 1.7% on November 19. Johnson Matthey traded at 2,694 pence on November 19, above its respective 100-day, 50-day, and 20-day moving averages. The trend is upwards for the stock, and the analysts’ target price is set at 3,204.73 pence, denoting upward potential. The trailing-five-day return of the stock was 10.0%, and its trading volume surged to 1,994,403 stocks on November 19 from 721,760 stocks on the previous day after the announcement. The stock earned 9 “Buy” recommendations, 7 “Hold” recommendations, and no “Sell” recommendations.
Royal Mail (RMG-LON) also made it to the top as it reported earnings results that beat expectations. It forecast low costs for the full year ahead.
Stocks at the bottom of EWU on the day were G4S (GFS-LON), Imperial Tobacco (IMT-LON), and Tate & Lyle (TATE-LON). These stocks yielded -2.9%, -2.2%, and -2.1%, respectively, on November 19.
Mining stocks kept their uptrend in stock prices as Goldman Sachs (GS) upgraded Antofagasta (ANTO-LON) on Wednesday, November 18. Other mining stocks rallied on the back of this positive outlook towards future demand in the sector. Besides, the People’s Bank of China said that it will cut the rates of its Standing Lending Facility to inject more liquidity into China’s financial system. This statement bolstered the mining sector on the day. Hence, BHP Billiton (BHP) and Rio Tinto (RIO) rose 0.7% and 0.9%, respectively, on the day. BP (BP) also advanced 0.4% on November 19.
For more, please visit our page on US Equity ETFs.
Browse this series on Market Realist: