With the FTSE 100 (UKX) touching a confidence-boosting 6,000 points just before Christmas, markets approached the year end in buoyant mood. In 12 months that saw the AIM All-Share (FTAI) index begin to stretch its legs towards levels not seen since before the economic downturn, it was little surprise that many of London’s top stock performers this year were among the small caps.
While AIM’s detractors point to the damage caused by surging numbers of de-listings through the economic downturn and the negative effects of a stymied flow of new entrants to the market, others are more upbeat. The general consensus among analysts is that the swingeing effects of the economic squeeze has stripped AIM of those companies that were ill-equipped to be on the market in the first place. And while the overall value of AIM has fallen by 14% over five years, those companies that have slashed costs and navigated two years of economic turmoil are now well placed to grow. In turn, those institutions that balked at the prospect of small cap investing during that period could be about to witness a string of missed opportunities.
Investors in any of the top ten best stock market performers in 2010 would have enjoyed gains in excess of 700% and those that backed the winner and runner-up were dazzled with a 2,000%-plus value boost. And so onto Stockopedia’s Annual Top 100 Stock Market Performance Awards, a performance round-up that sounds out the most expert panel of all – the collective wisdom of the entire stockmarket.
The top ten best performers in the Top 100 summed up the mood of the markets this year. Commodity players in gold, silver, oil and gas all benefitted from attractive supply/demand fundamentals and retail investors that were warming to higher risk exploration plays. Gold broke $1,400 an ounce and analysts generally agree that $1,500 is likely soon (with a possible rise to $2,000 by the end of 2011). Likewise, silver continued a two-year market run to close 2010 at over $30 an ounce – its highest level for 30 years. Meanwhile, the price of oil rose from $76 a barrel to $94 between September and December, with industry watchers now expecting the price to break $100 during 2011.
The first prize in Stockopedia’s Top 100 Stock Market Performance Awards goes to The Parkmead…