FTSE Shares That Soared and Plunged This Week
Jul 6th 2013 2:15PM
Updated Jul 6th 2013 2:16PM
LONDON -- The FTSE 100 enjoyed a second winning week in a row, picking up 140 points (2.3%) to end Friday at 6,356. That comes despite lingering fears surrounding the future of the Federal Reserve's quantitative easing policy, jitters over U.S. jobs figures, and further uncertainty over Chinese growth.
We had a mixed week for individual stocks, with a variety of risers and fallers. Here are two of each from the U.K.'s top-tier index.
Lloyds Banking Group
Lloyds Banking Group had another up week, gaining a further 1.5 pence (2.3%) to 64.6 pence. That might not sound like a lot, but the price of the taxpayer-funded bank has more than doubled over the past 12 months, and it may well have a lot further to go. After slumping to massive losses during the crisis, Lloyds is expected to turn in a pre-tax profit of around 3 billion pounds this year, climbing to 4 billion based on 2014 estimates. That gives us forward a P/E multiple for this year of over 14, which is high for the sector, but it drops to 11 for 2014.
It's been another bad week for the miners, as investors just can't shake off their fears over Chinese economic growth. One of the biggest fallers this week was Glencore Xstrata, the biggest miner in the FTSE since the merger of its two halves. Over the week, the price slipped a further 15 pence (5.6%) to end the week at 257 pence -- it is now down 27% since the start of 2013, although others in the sector have fared worse. With a 20% fall in earnings forecast for the year, Glencore shares are on a forward P/E of 11.
Television broadcaster and producer ITV is another that has seen its stock double over the past year, and again it had a positive week, with a 9.4 pence (6.7%) rise to 150 pence. Recovering advertising revenues have done their bit to help, and the company has seen rising earnings for the past few years. And its dividend, which was suspended in 2009, is back and growing. Even after such a great price rise, forecasts put ITV at a forward P/E of a fairly modest 15. There's only a 2.4% dividend yield expected, but it should be three-times covered.
Ever since failing in its security contract for the London Olympics, G4S has been in the market's bad books, and though the price did recover some during the first few months of 2013, it has since slumped badly. This week saw no respite, with a further fall of 4.1 pence (1.8%) to 226 pence -- that's a 28% fall from April's high of 316 pence. But at a forward P/E of only 11 based on this year's flat earnings forecast, dropping to under 10 based on a return to earnings growth expected for 2014, and with a likely dividend yield of around 4%, G4S is looking cheap to me.
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The article FTSE Shares That Soared and Plunged This Week originally appeared on Fool.com.Alan Oscroft has no position in any stocks mentioned. The Motley Fool recommends Vodafone Group. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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