UK equity market supported by macro factors

September saw the UK equity market make meaningful gains. The increases have taken

it well into the mid-teens in percentage point returns for the year to date. Leading the

way was the Materials sector, largely mining stocks, with a substantial increase into low

double digits. This was significantly ahead of Financials which is one of the two bestperforming

sectors, along with Industrials, this year so far.

Overall, only three sectors, Communication Services, Consumer Staples and Energy fell

over the month. None have given negative returns over the year to date, although

Consumer Discretionary has only just crept up to positive territory.

The macro situation supported the market over the month as oil prices declined, and

sterling was little changed at a fraction under the level it started the month against the

dollar.

Higher equity prices with no commensurate increase in dividends means that valuations

have risen.

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