Retail investor sentiment in July fell to its lowest level in two years, following bad news affecting the performance of the FTSE 100, according to Halifax’s share dealing market tracker.
The results are from an online survey carried out last week with Halifax customers who have traded with the bank in the last month.
Those who believe the value of their portfolio has decreased over the past six months was at its highest level in over two years last month, with 37.3 per cent feeling their portfolio had decreased, compared to 30.5 per cent feeling it had increased.
Optimism for the outlook of the FTSE on a monthly basis fell for the second consecutive month, with 32.2 per cent of investors believing it will fall in August, compared to 12.4 per cent who think it will rise.
The six month and 1 year optimism in FTSE 100 performance also fell in July, with 37.9 per cent of investors expecting it to be higher in six months time, compared to 45.9 per cent who said the same in June, and 60.5 per cent expecting it to be higher in a year, compared to 69.9 per cent last month.
Damian Stansfield, managing director of Halifax Share Dealing, said that as the FTSE 100 experienced headwinds over the past month, investors should regularly review their holdings and ensure they remain comfortable with their portfolio.
“All individual sectors are different and there is no substitute for research; as ever, past performance alone is not a reliable indicator of future performance.”
Financial services is still the widest held sector among investors, with 64.4 per cent currently invested. Whilst this remains higher than the same time last year, it is down from previous months.
Consumer services, including retailers, leisure, entertainment, media and transport, saw the biggest increase in investments last month, up 3.4 per cent to 44 per cent.
Energy and mining stocks also saw a slight increase in the last month, with 61.8 per cent of investors exposed, compared to 60.9 per cent in May, although annually they saw a 1.3 per cent decrease. Looking ahead, this is the sector where most investors (51.1 per cent) will be looking to invest in the next six months.
