Definition: Defensive Stocks
Any company stocks that tends to remain stable during a stock market downturn or difficult economic conditions are known as defensive stocks. These may include companies from the food, tobacco, oil and utilities sectors because demand for these typical products and service continues through out any stockmarket downturn.
Any stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market may also have appeal as a defensive stock. Whilst defensive stocks may remain stable during recession - or even performing better than the market, during a market recovery the stock may perform below market expections.
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London close: Stocks rebound, EU summit eyedShareCastDefensive stocks were firmly out of favour today as investors tapped into 'riskier' assets. Utility peers Centrica, United Utilities, Severn Trent and SSE were among the worst performers of the day. Resource stocks were leading the risers on the ...and more » |
05/21/2012 05:25 PM
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IT stocks weigh on Sensex, SBI gains for 2nd dayNDTVThese defensive stocks have seen strong buying as markets tumbled. In all, 29 of the 50 stocks closed in the green on the Nifty index. Tata Power (5.23%) was the top gainer, followed by Reliance Infra (4.13%). The country's biggest car maker Maruti ...and more » |
05/21/2012 11:51 AM
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Telegraph.co.uk |
FTSE 100: Miners haul up large-capsTelegraph.co.ukEven though traders remained cautious, defensive stocks - traditionally regarded as safer havens - were on the wane. Centrica cooled 0.8pc and Severn Trent eased 0.5pc. On the second tier, Lamprell slipped 5.5pc as Nomura cut its rating on the oil rig ... |
05/21/2012 10:58 AM
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Consistency and patience pay offFundwebThere is an appetite for defensive stocks in the market and investors should favour consumer staples and trusted brands, which have provided some of the most consistent, dividend-yielding stocks over the past year. These are particularly attractive to ...and more » |
05/21/2012 12:18 AM
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Hong Kong, China shares down; HSBC plungesBusiness Recorder (blog)Strength in some defensive stocks in Hong Kong further pointed to caution, but helped the Hang Seng cut losses on the day, finishing at 18951.9, near the day's highs after bouncing off chart support seen at 18575-18627, a range that was strong support ...and more » |
05/19/2012 12:28 AM
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05/18/2012 05:30 PM
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