Not a good start to the year! FTSE has suffered its worst quarter since 1987, as the corona virus crisis sees the number of stocks fall
The UK stock market has suffered its worst over more than three decades, as the coronavirus crisis causes stocks to fall.
Despite steady gains yesterday, the FTSE100 fell 24.8 percent or 1870.48 points in the first three months of the year to close the first quarter at 5,671.96.
That was the largest quarterly decline since the last three months of 1987 and the biggest quarterly decline at record levels.
Despite steady gains yesterday, the FTSE100 fell 24.8 percent or 1870.48 points in the first three months of the year to close the first quarter at 5671.96
The route has wiped out £ 470 billion of the value of the UK blue-chip companies and £ 615 billion of the broader FTSE All-Share, causing major savings for pensioners and other investors.
Most of the losses – about 23.4 percent – have passed in just over five weeks as Covid-19’s spread around the world accelerated.
Economy in the mud
The British economy is plunging into a recession and has come to a halt before the corona virus hit.
Figures from the Office for National Statistics found that production stagnated in the last three months of 2019, as concerns about the World Trade Wars, Brexit and the general election had dampened confidence.
That means the economy was struggling even before the Covid-19 outbreak hit the UK.
Capital Economics warned that in the second quarter of this year, Britain will experience a 15 percent production cut, with the overall recession being much deeper than during the 2008-09 financial crisis.
The sale was the worst since the stock market crash on Black Monday in October 1987, when the FTSE100 fell 23 percent in two days.
David Buik, an Aquis Exchange consultant, said: “The recovery process for companies can take a long time and dividends are likely to be cut or canceled by many companies. This harms the pension value for years. ‘
While the market has plummeted in recent weeks, the FTSE100 has risen 13.6 percent since crashing to a nine-year low below 5000 last week.
The blue chip index rose nearly 2 percent yesterday after China’s official purchasing managers index (PMI), where production fell below 50 and grew above growth, rose to 52 in March, from a low of 35.7 in February as factories in the all over the country were closed to stop the spread of the virus.