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The FTSE 100 has now (2 May) largely recovered most of the losses caused by President Trump’s ‘Liberation Day’ announcements. The index is now only 1% lower than before ‘The Donald’ caused global stock markets to tumble.
Losers
But not all stocks have survived unscathed.
On fears of a world recession, oil prices have fallen sharply over the past month or so. It’s therefore not surprising to see Shell and BP in the bottom five of the league table of performers over this period.
| Stock | Change in share price (%) |
|---|---|
| Melrose Industries | -9.1 |
| Shell | -13.8 |
| Glencore | -14.1 |
| BP | -19.7 |
| Bunzl | -22.2 |
Bottom of the league
However, the worst affected has been Bunzl (LSE:BNZL). But to be fair, not all of this can be blamed on the present occupant of the White House.
That’s because, on 16 April, the international distributor of low-cost critical items released a trading update, that reported disappointing sales (“revenue softness”) in North America and lower-than-expected earnings for the first quarter of 2025. Of concern, the group’s operating margin also fell.
Although ‘Liberation Day’ wasn’t a thing during most of this period, the group did admit there were “significant uncertainties” surrounding Trump’s tariffs.
Admittedly, the update was disappointing. But I think a 25.6% reduction in the group’s share price — that’s how much it fell on the day the news was released — is unjustified.
And the company’s chief executive and chief financial officer appear to agree with me. They see the pullback as an opportunity. Between them, they’ve bought £862,667 of the company’s stock. Other shares were acquired as part of a bonus scheme.
The falling share price now means the stock’s yielding close to the FTSE 100 average. But it’s important to remember that the dividend could come under threat if trading continues to fall below expectations. At the moment, to help preserve cash, the company’s directors have decided to pause the current share buyback programme rather than trim the payout.
Another positive is that the stock’s price-to-earnings ratio is now lower than its recent historical average.
For these reasons, value investors could consider joining the company’s two most senior executives and add Bunzl shares to their portfolios.
Winners
In contrast to the performance of the Bunzl share price, there have been some winners. In some cases, it’s not clear why.
| Stock | Change in share price (%) |
|---|---|
| Berkeley Group | +16.8 |
| JD Sports Fashion | +15.6 |
| 3i Group | +15.4 |
| easyJet | +15.0 |
| J Sainsbury | +14.8 |
For example, 3i Group, invests in mid-market companies in both Europe and America. In particular, it operates a North America Infrastructure Fund, which could be impacted if the US moves into recession.
As for JD Sports Fashion, it looks as though it’s managed to reassure investors who appeared to have doubts about the group’s financial performance. After announcing that it was trading in line with expectations, its share price experienced a mini rally. However, after completing a recent acquisition, America is now a key market so I don’t think it’s out of the woods yet.
Looking further ahead
With President Trump’s tariffs on pause, there’s still considerable uncertainty around. And his first 100 days have been eventful.
That’s why it’s important to take a long-term view when it comes to investing and try not to get too distracted by short-term price movements.
The recovery of the FTSE 100 over the past few weeks shows how, generally speaking, well-managed financially robust companies are able to cope with economic shocks.
