There are many things to consider when looking to invest in UK stock markets in 2021. Unfortunately, it is impossible to ignore the impact of COVID-19 and this had a massive effect on stock markets across the planet in 2020. However, with things improving in the United Kingdom what are some of the strong UK stock markets to watch in 2021?
As highlighted above, COVID-19 has and continues to play a significant role in peoples lives and that makes blue-chip stocks extremely tempting right now. Blue-chip stocks are the most financially-sound and matured companies, usually making them a leader in their sector. The FTSE 100 is home to blue-chip stocks in the UK and at the time of writing, AstraZeneca is leading the way. The pharmaceutical company has made giant strides in recent months thanks to the creation of a COVID-19 vaccine. In terms of market capitalisation since the start of the COVID-19 pandemic, AstraZeneca has become the largest company on the FTSE 100 index and with a progressive dividend policy, the stock tends to grow gradually.
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Remaining in the FTSE 100, we switch to tech stocks and one of the biggest performers in recent times is the Ocado Group. Known by most of the public for online groceries, the Ocado Group operates differently to many of the leading supermarkets in the UK. You will not find any Ocado stores in the country, instead, the company uses robot-operated 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 top supermarket brands around the world. Thanks to their business model Ocado was less disrupted by the COVID-19 pandemic then their competitors and in 2020, the share price increased by over 60%.
Gamers will know all about Games Workshop but perhaps it will come as a surprise to see the brand listed as one of the strong UK stocks for 2021 on the FTSE 250. Looking back on the results of the past five years, Games Workshop has been one of the best performing retailers and that has seen the share price rise by over 2000% since 2016. The customer base remained loyal throughout lockdown in the UK and although sales my dip a little as things continue to open up, Games Workshop is a proven steady performer in the UK stock market.
So, the 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 including HSBC, GlaxoSmithKline, Kanabo, Diageo, British American Tobacco, and Kainos Group on these stock markets.
Interesting Related Article: “A year of strong stock market growth“
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