Saturday 29 February 2020

Shares in February 20

Worst week for tech share performance in TechMarketView's history

As the headlines shouted, the last week of Feb 20 turned into a bloodbath on the world stock exchanges. Given that TechMarketView was only founded in 2009 - after the Great Financial Crisis of 2007/8 -it was the worst week in TMV’s history.

NASDAQOur usual table showing the movements in Feb and 2020 YTD actually doesn’t show the real horror of the last week. Indeed, as you can see from the chart of NASDAQ by week in 2020 YTD, everything was actually going quite well up until 21st Feb 20. But the  NASDAQ fell 12.2% in one week - - erasing all the gains YTD and some. Indeed NASDAQ is now down 5.7% YTD. The FTSE100 fell 10% last week and is now down 12.75% YTD. The FTSE SCS Index, which most closely tracks the UK Software and IT Services stocks that we cover at TMV, fell 10% last week and is now down 11.7% YTD.

The spread of coronavirus really spooked the market. To be fair, we (and others) had warned of this well before last week. The markets were enjoying a bull run which had extended over many years. A ‘correction’ was well overdue. Maybe the market was waiting for an ‘excuse’? Well, they certainly got one!

Was there an upside?

Indeed there were A Few Good Men. But mostly it was a month of the Not so Good, the Bad and the downright Ugly.

HVPFor a full and detailed review of tech share performance in Feb 20 and our views for the future (Don’t Panic sums it up...) See HotViews Extra Share Indices in Feb 20.

You’ll need to be a ‘paying’ subscriber to gain access. Most of the leading software and IT services companies serving the UK market are subscribers. But if you are not employed by one of them you can get an individual subscription which includes HotViews Extra as well as a host of other goodies. CLICK HERE for more details and to apply online to subscribe.

Posted by Richard Holway at '22:29'