UK Barometer: August 2021

UK small and mid-cap stocks have continued this year's strong run in August

James Gard 2 September, 2021 | 9:07AM
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Barometer showing changeable weather

Every month we look at how the stocks in the Morningstar UK Index have performed according to size and investing style. Despite a mid-month wobble, UK stocks had a decent month in August, putting in the best performance this year since April, helped by a wider rally in global markets. It was a positive month for all categories but small-cap value stocks were the standout with a gain of more than 7% in August alone. 

Small-cap stocks were the best performers across value, growth and blend investing styles with gains of 7.12%, 6.41% and 6.99% respectively in Augusr. This compares favourably with large-cap stocks in August, which gained 1.17%, 4.24% and 1.56% across equivalent categories. While the large caps have done well this year, UK small and mid-cap companies have excelled in share price terms during the economic recovery, pushing their respective benchmarks to record highs in recent weeks. In the year to date, small-cap blend and growth stocks are the best performers too with gains of 30% and 22% so far. There are 29 stocks within the small-cap value category and they are some of the most economically sensitive in the index. Many household names like Dixons Carphone (DC.), The Restaurant Group (RTN), Halfords (HFD) and JD Wetherspoon (JDW) are tied to the fortunes of the British consumer, who so far has splashed out this year, according to retail sales figures. Whether this momentum can continue as coronavirus cases rise into the winter remains to be seen.

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James Gard  is content editor for


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