Wednesday, 15 May 2013

FTSE frequency of price increase by month

The purpose of this analysis is simply to see which month's in the year typically see an increase in the FTSE index price.

This test has been conducted using the last 10 years worth of FTSE pricing history. Therefore, the data has been collected from 1st January 2003 up until 31st December 2012. The calculation has been based on the closing prices of each month, for example if January closed at a price of 5788 and February closed at a price of 5865 then this will be considered as an increase in the share price in the month of February.

The y-axis in the chart below illustrates the number of years a particular month has seen an increase in the price for FTSE.

The chart above demonstrates that typically the months running up to Christmas (December) tend to see an uplift in the price of the FTSE. Additionally, December has seen an increase in price each year for the last 10 years against the closing price of November. However, Janauary on the other hand has only seen an increase in the price against Decembers closing price 3 times in the last 10 years.

This is merely a simple analysis of which months frequently see an increase or decrease. Therefore, other factors may need to be considered on various areas, for instance the fundamentals may need to be examined to determine why December has the highest amount of increases in price. Additionally if you feel that any further detail is required please let us know and we will add this to this analysis.

Just to let you know we will be following on this post with further FTSE performance analysis in another post.

Comment below if you want us to analyse another area of the ITV stock.

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