Financials are main impetus behind 2024 gains

UK equities delivered a strong return over the course of 2024, only just failing to deliver

double digit gains. That said, December suffered negative performance in every sector bar

two. The worst performing sector was Real Estate closely followed by Materials, Consumer

Discretionary and Industrials. Financials and Not Classified were the only two to gain over

the month. It is not hard to discern the perceived effect of interest rates on the relative

performance between sectors. The bank rate was left unchanged in December.

Over the year Financials were the stand-out winners, rising in value by over a quarter.

Industrials, Consumer Staples and Communication Services also posted double-digit gains

while Real Estate was down by a similar figure. Partly driven by out-of-favour financials at

the start of the year, a Value style delivered superior returns.

External influences were modest in December although the slight strengthening of sterling

against the dollar was probably a small negative factor. Despite that the forecast for

dividends to be paid out next year edged up slightly.

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