UK equities up across most sectors

Every sector in the UK market rose in May enabling the market overall to increase by

mid-single digits. The spread of returns ranged from barely positive for Consumer

Staples to high-single digits for Materials. However, most sectors made gains in the

lower half of the range. Over the course of the year to date, three sectors - Financial,

Industrials and Utilities - have made gains well into double digits.

External political factors were the main drivers of moves in the market as analysts did

their best to interpret the likely impact of changes to US tariffs. Sterling strengthened a

little over the month but did not play a large role in the changes to valuations. A

modest improvement in the oil price over the same period was also not a material

factor.

There was a very small increase in the forecast for dividends to be paid by listed UK

companies next year. Declines from dollar sensitive companies in sectors like oil and

banking were compensated by increases from a mixture of others.

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