By Philip Lawlor, managing director, Global Markets Research
Examining the industry-weighted contributions to the total return regionally since the market peaked on February 19 highlights that financials have been the largest negative contributors across most regions.
In the US, the underperformance of the large technology sector has weighed heavily on the overall return of the market. Elsewhere, industrials and consumer goods have also contributed significantly to overall losses.
By contrast, investors have sought the relative safety of the more defensive utilities and telecoms, reflected in the chart by their small negative contributions..
Industry-weighted contributions to total returns since February 19, 2020
Source: FTSE Russell. Data as of March 24, 2020. Past performance is no guarantee to future results. Please see the end for important disclosures.
Drilling into the biggest negative industry contributors to returns within each region shows that four main industries—financials, industrials, consumer goods and technology—have been the main drivers behind the equity market declines since the peak on February 19, and that some 40% or more of the underperformance was generally concentrated in two main industries.
Largest negative industry contributions to total returns since February 19, 2020
Source: FTSE Russell. Data as of March 24, 2020. Past performance is no guarantee of future results. Please see the end for important legal disclosures.
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