The best and worst stocks on the FTSE MIB 40 from January 2024 to today. What scenarios are opening up and how can you take advantage of them?
The best and worst stocks on Piazza Affari (the Italian nickname for the FTSE MIB) from the beginning of 2024 to today clearly show us which are the best-performing sectors and indicate the way towards the final months of the year.
The Italian index FTSE MIB 40 represents one of the most significant measures of the performance of the Italian stock market, including the 40 companies with the highest capitalization and liquidity listed on the Italian Stock Exchange.
The potential of this index offers a complete and representative overview of the country’s economic performance. The index reflects not only the economic health of major Italian companies but also their ability to innovate and compete globally.
The prices of financial instruments listed on the markets discount all available information, they are the reflection of the intersection between supply and demand of the various operators, if the liquidity for purchase is greater than that for sale, the price rises, and vice versa it falls. But the price trend of individual securities can give us a lot of important information when analyzed within a basket.
The FTSE MIB 40, from the start of listings in January 2024 to today, returns the following classranking of securities, according to the proprietary indicator TRR which indicates relative strengths.
- 4 portfolios for the FTSE MIB
- From top to bottom: "Keep aggressive trend", "Keep defensive trend", "Defensive phase", "Trend inversion"
It is obvious how the financial sector has been favored, considering how many rate cuts the market was discounting at the end of 2023 and how many have been made to date. High rates on the one hand represent greater margins on the rate differential for the banks but on the other a lower demand for credit, therefore of the masses, as long as the economy is doing well the banks make profits, like the record ones of the Italian ones in 2023.
On the contrary, utilities, highly indebted, are retreating in the face of still high rates even if some stocks are moving well such as Hera with +5.14% of TRR since the beginning of the year. If the index rises, the heaviest stocks in the basket will be purchased more by those who replicate the FTSE MIB for passive and active strategies. The energy companies are also not entirely in agreement: Eni and Tenaris in the low ranking, Saipem sixth, obviously the corporate events of the individual stocks can influence the relative strength compared to the sector. Among the top 12 non-financial stocks, in addition to Saipem, are the Italian jewels: Leonardo, Prysmian and Ferrari.
With the current ranking, based on the most probable scenarios (aggressive trend continuity, defensive trend continuity, defensive phase, trend reversal), four portfolios can be simulated and checked at the end of the year whether they have maintained their strength relative valid from the beginning of the year to today. The market provides us with trends, we must follow them and exploit them, as long as they are clear and last.
Original article published on Money.it Italy 2024-07-18 15:30:00. Original title: I titoli migliori e peggiori sul FTSE MIB da inizio 2024. Come approfittarne?
