Healthcare group Uniphar, insulation giant Kingspan and life sciences investment company Malin are on track to lead a broad list of advancing Iseq 20 stocks this year, with Flutter, Ryanair and Dalata Hotel Group among a small selection of weak spots on the index.
Uniphar’s market value has more than doubled in value over the course of 2021 to €1.33 billion, with only a few days of trading left, as it benefitted from strong profit growth and earnings and mergers and acquisitions activity in its sector.
The pharmaceuticals wholesaler, retailer and healthcare services group’s gross profit surged by 31 per cent in the first half of the year, fuelled by acquisitions and a standout performance by its commercial and clinical division, which helps pharmaceutical companies and medical device manufacturers with marketing and distribution.
Sentiment was also boosted as Dublin-based but London-listed peer UDG Healthcare was taken over by US private equity giant Clayton Dublier and Rice for the equivalent of over €3 billion.
Kingspan jumped 80 per cent, with the company forecasting a trading profit of €750 million this year, “significantly ahead” of the €508.2 million recorded in 2020, as insulation product sales have surged as economies rebounded following Covid restrictions.
While the company’s green credentials have been a favourite among many environmental, social and governance (ESG) investors, this has been capped by damaging headlines about the insulation manufacturer at an inquiry into the Grenfell London tower block fire in 2017.
Malin soared by almost 60 per cent as the company returned €95 million to shareholders by buying back stock after selling its stakes in injectable drugs company Altan and Kymab, which is developing an eczema treatment.
Bank of Ireland jumped nearly 55 per cent as the wider Irish banking sector benefitted from news that Ulster Bank and KBC Bank Ireland are retreating from the market – and as investors began to factor in the prospect of European Central Bank rate raises over the medium term. Permanent TSB sparkled among small-caps, rising 75 per cent.
Glenveagh Housebuilders is set to complete the top-five stocks on the Iseq 20 for the year, rising more than 40 per cent amid rising house completions and share buybacks.
Worst performer
Bucking the trend in which the Iseq overall index is currently on track to end 2021 up more than 14 per cent, Flutter has stood out as the worst performer on the market. The Paddy Power-owner is down 18.5 per cent so far this year having been the main winner in the market in 2020.
Ryanair has lost 5 per cent, with the emergence of the Omicron Covid variant in recent months denting sentiment towards travel stocks globally.
Dalata Hotel Group is also set to end the year down about 2.5 per cent.
Green energy company Greencoat Rewnewables, down 5 per cent, and Kerry Group, off 4 per cent, cap off the list of five weakest Iseq 20 stocks of 2021 as investors prepare to make their final trades of the year.
