There are a lot of things to consider when looking to invest in the UK stock markets in 2021. Unfortunately, it is impossible to ignore the impact of COVID-19 and it has had a massive effect on the stock markets of the planet in 2020. However, with things improving in the UK, what are the strong UK stock markets to watch in 2021?
As pointed out above, COVID-19 has played and continues to play an important role in people’s lives and that makes top-notch actions extremely tempting right now. Blue-chip stocks are the most financially sound and mature companies, which generally makes them a leader in their industry. The FTSE 100 is home to top UK stocks and at the time of writing AstraZeneca is leading the way. The pharmaceutical company has made giant strides in recent months with the creation of a COVID-19 vaccine. In terms of market capitalization since the start of the COVID-19 pandemic, AstraZeneca has become the largest company in the FTSE 100 index and with a progressive dividend policy, the stock tends to grow gradually.
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Staying in the FTSE 100, we’re moving into tech stocks and one of the top performers in recent times is the Ocado group. Known by most of the public for online grocery shopping, the Ocado Group operates differently from most of the major UK supermarkets. You will not find an Ocado store in the country. Instead, the company uses robotic picking in a warehouse and sends the goods to the customer. This is what makes the Ocado Group primarily a tech stock and their digital technology has been licensed to other major supermarket brands around the world. Thanks to their business model, Ocado has been less disrupted by the COVID-19 pandemic than its competitors and in 2020 the share price has risen by more than 60%.
Players will know all about Games Workshop, but it might come as a surprise to see the brand feature among the strongest UK stocks for 2021 on the FTSE 250. Looking at the results of the past five years, Games Workshop has been the winner. one of the top performing retailers and has seen the share price rise by over 2000% since 2016. Customer base has remained loyal throughout the UK foreclosure and although sales are declining a bit as it does As things continue to open, Games Workshop is a stable performer on the UK stock market.
Thus, strong UK stock markets to watch in 2021 include the FTSE 100, FTSE 250, the London Stock Exchange and the Alternative Investment Market. You will find companies such as HSBC, GlaxoSmithKline, Kanabo, Diageo, British American Tobacco and Kainos Group on these exchanges.
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