The fashion industry is ever-evolving. What’s fashionable today may be forgotten tomorrow. However, one of the world’s leading fashion companies, Burberry continues to prove its mettle by joining StanChart in gaining a spot amongst the FTSE 100 movers. On the other hand, Frasers has come in the red, continuing the ever-fluid intellectual capital of the fashion and stock industries. Keep reading to find out more.
1. Ups and Downs on the FTSE 100 Today
The FTSE 100 had a tumultuous day, with both ups and downs making their mark. After opening at 7150.23, the market ended the day slightly lower at 7126.05.
The rollercoaster ride during the day included several dizzying drops and spectacular recoveries. Notable highs and lows included:
- Imperial Brands (+12.1%) soaring to a high of 1,299.3 after its tobacco shipment increased during the year.
- Aviva (-7.79%) dipping as low as 253.1 after disappointing sales in the end of 2019.
- Hargreaves Lansdown (+3.04%) peaking at 1,734 after its Full-Year Report revealed strong growth.
- Melrose Industries (-13.02%) falling to a low of 136.02 due to their Half-Year Report missing revenue targets.
Despite the shares bouncing around, the FTSE 100 ultimately ended the day lower, signalling that investors remain cautious.
2. Assessing the Day’s Biggest Winners and Losers
At the end of the day, it’s important to assess what went well and what didn’t. A quick way to see how the day played out is to determine who fared well and who came out the worse for wear. Here a few highlights from the day.
- Winners: The biggest winner of the day has to be the tech stocks, which experienced an incredible rise thanks to strong earnings and advancements in artificial intelligence. Another winner was dollar debt, which was bolstered by a report indicating that the U.S. economy is stable.
- Losers: On the downside, oil fell due to concerns about oversupply. Gold also tanked, as geopolitical tensions between the U.S. and China waned. Additionally, the pound weakened due to concerns about Brexit and signs that the economy may be slowing.
It was a day of highs and lows, and most certainly a day worth assessing. Despite some of the economic headwinds, many sectors are continuing to show signs of strength. So regardless of today’s winners and losers, the overall trajectory may still be pointing upward.
3. Burberry and StanChart Zoom Upwards
Like two pros ready for a show, Burberry and Standard Chartered are preparing for take-off! This year, both companies have experienced a great surge in performance and market cap – and have zoomed up surprisingly fast.
Both companies have had their respective milestones recently – Burberry notching up a 44% quarterly increase in full-year revenues, and Standard Chartered tripling its share prices since March. Unprecedented measures have been taken: Burberry has increased its marketing campaigns to boost sales, and Standard Chartered has been leveraging digital banking services to bring about greater customer reach.
- Burberry has revolutionised its business model this year by rolling out a pandemic-oriented collection.
- Standard Chartered has taken steps to upgrade its existing systems and launch new products.
The combined efforts of both these companies have contributed to positive movements in their respective stocks, and shows no signs of letting up. What a wonderful way to stay afloat in a time of unrest.
4. Frasers Slip Down the Rankings
It’s been a discouraging few weeks for Frasers, who have been on a swift decline down the rankings ever since their star player, John Smith, suffered an injury. With John out of the line-up, the team has been notably weaker defensively, putting them at a deficit each game.
This carries a hefty toll on the team’s overall standing. Starting the season at the 5th spot in the elite division, they have sunk to the 8th rank as the losses keep accumulating. It is becoming increasingly difficult for the team to mount a fightback with each game.
- Poor defensive performances have been costly for Frasers as they recorded 4 losses in the last 6 games
- John Smith‘s absence from the team has been felt as the team is shaky without its star player
As markets continue to remain unpredictable, the top risers and fallers on the FTSE 100 provide an interesting insight into the current climate of the UK stock market. It is clear from these latest moves that Burberry and Standard Chartered are confident in their plans for the future, while the outlook for Frasers Group is a shade more uncertain. Only time will tell if these strategies prove to be sound investments.
