ITV and UK stock market: AIM significantly outperforms FTSE 100

“A 0.2% rise in the FTSE 100 on Friday to 7,619 isn’t enough to lift it out of the sticky patch in which it has traded since mid-June. “Utility companies and tobacco stocks are doing their best to lift the blue chip index but there is notable resistance from insurers and banks which weigh on the FTSE and make it harder for the market to break out of its current rut,” says Russ Mould, Investment Director at AJ Bell.

ITV

“Just as the English public appear to be falling back in love with their football team again, the market seems to be warming to free-to-air broadcaster ITV. “Almost 24m people watched England end their penalty hoodoo on ITV1, at one stage four in five people watching TV in the UK were tuned into the channel.

“Though this is an exceptional event, is also a reminder that for all the talk of online streaming people do still watch live TV, making it a medium with enduring attractions for advertisers.

“If England makes it through their quarter final against Sweden – a game being shown on the BBC – then ITV is scheduled to screen their semi-final which would be good for audience numbers and potential advertising income. “Arguably the company is also being boosted by the other TV phenomenon of the summer: ITV2’s Love Island. Health and beauty shopping brand Superdrug recently reported a surge in profit after sponsoring the show.”

UK stock market: AIM significantly outperforms FTSE 100

“For all the criticism in the past that the AIM stock market is like a casino, the junior stock exchange continues to defy its critics. AIM is actually the one place where investors have made money on the UK market this year when looking at it from an index perspective.

“The AIM 100 index is up 5.1% so far in 2018 versus a 1% decline from the FTSE All-Share (which is often considered to be the benchmark for the broader UK stock market) and a 1.1% drop in the FTSE 100.

“The best performers include software group WANdisco which is up by 92.6%; and polling business YouGov which is 56.7% higher year-to-date.

“AIM 100 is made up of the 100 biggest companies on AIM including fashion retailer ASOS, tonic water specialist Fevertree Drinks and Jet2.com airline owner Dart Group. It contains larger companies than you might imagine: for example, if it was listed on London’s Main Market, ASOS is big enough to qualify for inclusion in the FTSE 100.

“Nearly half (45 stocks) of the AIM 100 would meet the current size criteria for the FTSE 250 index, should they switch their listings to the Main Market.

“Even the AIM All-Share index, which includes much smaller companies, is doing better than the FTSE with a 3.3% gain year-to-date.”

These articles are for information purposes only and are not a personal recommendation or advice.