Sector Shifts: Stocks gain as investors stop chasing tech profits

FTSE 350 shares continued to climb back to their highs earlier in the week as investors returned to value shares while taking some profits from technology names following the market’s recent surge.

“As concerns about poor market breadth hit the mainstream, breadth began to improve,” he said IG Chief Market Analyst Chris Beauchamp.

“Nvidia surged last week with the Nasdaq 100 index hitting 20,000, but the new week continues where Friday left off, with legacy stocks rising and tech continuing to decline. This type of rotation is very healthy for continued growth into July.”

Beauchamp also noted that it was fresh inflows that pushed London’s top index higher on Monday, while political risks appeared to be off the table on both sides of the English Channel.

“Despite today’s lack of news, it appears investors are still content with the decline.”

By the way, on Monday analysts at JP Morgan is optimistic about the prospects for shares of companies in the euro zone in the run-up to the first round of parliamentary elections in France, which will take place on June 30.

Nevertheless, they expressed concern that the situation would likely have to “get worse before it gets better”, even if they expected an attractive entry point to open in the second half of 2024.

Writing in the FT, Gideon Rachman also expressed hope, even as he outlined all the potential pitfalls.

Sectors that are currently performing best

Personal property 15,195.20 +3.50%

Life insurance 5880.95 +3.10%

Chemistry 8,383.46 +2.30%

Tobacco 29,221.19 +1.75%

Recreational items 26,916.13 +1.63%

The lowest performing sectors so far

Retailers 3936.57 -0.66%

Medical equipment and services 11,333.64 -0.62%

Gas, water and utilities 5,681.13 -0.61%

Computer software and services 2,520.64 -0.58%

Closed investments 12,073.54 -0.17%