In part 2 of this 2012 Performance mini-series, we examine the best 5 and worst 5 performers in the UK FTSE 250 Index during 2012.
In my previous article, I covered the UK FTSE 100 best 5 and worst 5 performers.
Later in this mini-series, I’ll be covering the AIM index, Smallcap, Dow Jones and NASDAQ 100 so be sure to read about those too.
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So let’s first look at the best performers…
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The top performer Enterprise Inns, has 6,000 public houses (pubs) in the UK providing bar and restaurant services.
Their shares have more than tripled during 2012 beating the top performer in the Smallcap index, which is unusual.
The inclusion of Pace in this list is not much of a surprise as it had a poor 2011 due to short-term problems, which it was always expected to recover from.
International Personal Finance (IPF) is not a surprise either.
IPF is a lender of small short-term loans to private customers and so is benefiting from the recession and cash squeeze on its customers.
The inclusion of Dixons, a retailer, is perhaps more of a surprise however it is recovering somewhat after a difficult 2011.
Additionally, with its arch rival Comet going bust and disappearing from the UK high street at the end of 2012, Dixons is now benefiting from the reduced competition, much like TUI Travel in my FTSE 100 review.
Similarly Barratt Developments, a house builder is also a bit of a surprise in this list given the recession and depressed UK house prices in most of the country.
Mortgages are also tight due to lack of lending by the banks so first time buyers are still in short supply too.
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4 out of the 5 shares in this list are miners of one kind or another, so 2012 was obviously not a good year for large gold, precious metals and coal miners.
The worst performer, Bumi is a large Indonesian coal mining company floated on the UK stock exchange in July 2010.
These shares were falling during the 1st quarter of 2012 supposedly due to public disputes between the company board and one of its investors.
In the spring, the board claimed that these arguments were now finished but that has failed to convince investors because the shares have continued to fall.
By the end of 2012, Bumi shares were down 68.8% but some of this fall is probably due to other factors.
The odd one out is Chemring, a manufacturer of aerial targets for the Defence market.
It is currently suffering from the reduced spending on Defence of its UK and US Government customers in the short to medium term.
I welcome your own views and opinions which you can post in the comments area below.
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