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After a roller-coaster experience in April and Could, the UK’s FTSE 100 index is again to ranges seen at end-February. As I write, the blue-chip index stands at 8,786.37 factors, simply 0.3% beneath its shut on 28 February.
Having peaked at 8,908.82 on 3 March, the Footsie then plunged after President Trump launched hefty new tariffs on US imports. At 2025’s low, the index hit rock-bottom on 7 April, plunging to 7,544.83. This left it 15.3% beneath its all-time report excessive.
Luckily, the UK inventory market has come roaring again and now lies 16.5% above 2025’s low. Nevertheless, some FTSE 100 shares have fared significantly better than others throughout this turbulent interval.
Throughout the FTSE 100, there’s a broad hole between profitable and shedding shares over the previous three months.
In complete, 57 shares have risen in worth, with these features starting from 57.7% to 0.5%. The common achieve throughout these winners was 11.4%. This leaves 43 losers, with declines starting from 0.3% to 29.3%. The common loss amongst these laggards was 8%.
Because it occurs, I’m all the time searching for slumping shares, as I generally discover ‘fallen angels’ amongst deeply depressed shares. And I feel I discovered one amongst these 43 battered companies.
Bunzl blows up
Through the newest market meltdown, I noticed one inventory struggling a very brutal fall. On 16 April, FTSE 100 agency Bunzl (LSE: BNZL) launched an underwhelming set of outcomes. The market’s response was swift and savage, with shares on this British distributor of office provides crashing 25.6% that day.
As a worth/revenue/dividend investor, I believed this response was overdone. Therefore, my spouse and I snapped up inventory on this potential restoration play, paying 2,275p a share for our stake. As I write, Bunzl inventory hovers round 2,368p, 3.9% above our purchase worth. This values the group at £7.8bn, greater than 36% beneath its 2024/25 excessive.
Nonetheless, I hope for a sustained share-price restoration — particularly, given the shares closed at 2,538p as just lately as 12 Could. In the meantime, this Footsie inventory trades on 15.9 instances trailing earnings, producing an earnings yield of 6.3% a 12 months. Because of this the dividend yield of three.1% a 12 months is roofed a decent two instances by historic earnings.
Then once more, Bunzl has already warned of weak spot in its North American markets, so earnings will come underneath stress this 12 months. And better tariffs — at the moment suspended — may depress margins even more durable. And decrease revenues, earnings, and money circulate would possibly ship this inventory even decrease.
In brief, I see Bunzl as a ravishing discount purchase for followers of fallen angels to contemplate. And that’s why my spouse and I intend to carry onto this FTSE 100 share for the long term!
