Although Iona Technologies is the only technology stock listed, most high-tech companies have also done badly this year. There is no definite sectoral pattern to the underperforming shares and the five shares listed are all in different economic sectors.
However, once it became clear that there would be no meltdown in the entire tourist sector of the economy, the market quickly refocused on the strong fundamentals of these two businesses. The share prices of these companies were hit hard due to the foot-and-mouth crisis and the aftermath of the September 11th tragedy last year. Outside of the financial sector, shipping group ICG and the Jurys Doyle Hotel Group have proved their worth. For example, one financial stock that hasn't lived up to expectations is IFG, which has declined by 17 per cent since the start of this year. However, even within sectors, stock selection is crucial in the current environment. The two smaller financial institutions - Anglo Irish and First Active - have risen by more than one-third, while Bank of Ireland's share price has enjoyed an uplift of about one-quarter in the year-to-date period.Īn investment policy that involved a heavy weighting in the financial sector will have paid handsome dividends in recent months. Not surprisingly, financial stocks are well represented in the outperformers. Not shown in the table is McInerney Holdings, which has risen by 61 per cent.
A striking feature of these figures is the very wide disparity in returns: from the 73 per cent collapse in Elan shares to the 38 per cent rise in the share price of First Active. The accompanying table shows five outperforming shares and five underperforming ones.
In this environment the key to achieving reasonable investment returns lies in being successful at picking the right stocks. ZTE has decided to pass over investing in areas where returns arent likely to be high - its results later will show how its new strategy is paying off. The short-term prospects for share prices are likely to remain mixed and the current phase of directionless trading seems set to continue. If 10 days have gone by since your purchase, unfortunately we cant offer you a refund or exchange.
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