With the S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) up just 0.1% since the beginning of 2014, it's been a tough year for some investors on the Australian stock exchange.
Especially when we consider the strong results from the property market and the historically low interest rates on offer.
Easy monetary policy usually provides a boost for share markets but the RBA is having a tough time stimulating the non-mining sector and improving consumer confidence. Indeed it appears the share market is feeling the broader economy's pain, which includes rising unemployment and low levels of productivity.
Unsurprisingly, a large proportion of the worst performing blue chip stocks of 2014 come from the mining or retail sectors.
Here are 10 of the worst performing blue-chip stocks, with market capitalisations of $5 billion or more, so far in 2014.
Company | Share price at market open, January 2 2014 | Grossed-up dividends paid1 | Recent share price | Total Return |
Fortescue Metals Group Limited (ASX: FMG) | $5.84 | $0.29 | $2.94 | -44.8% |
Coca-Cola Amatil Ltd (ASX: CCL) | $12.04 | $0.69 | $9.04 | -19.2% |
Orica Ltd (ASX: ORI) | $24.05 | $1.12 | $18.83 | -17.1% |
Crown Resorts Ltd (ASX: CWN) | $17.00 | $0.45 | $14.11 | -14.4% |
Santos Ltd (ASX: STO) | $14.72 | $0.50 | $12.42 | -12.2% |
Rio Tinto Limited (ASX: RIO) | $68.50 | $3.19 | $58.47 | -10.0% |
BHP Billiton Limited (ASX: BHP) | $38.12 | $1.87 | $32.92 | -8.7% |
AGL Energy Ltd (ASX: AGL) | $15.03 | $0.80 | $13.18 | -7.0% |
QBE Insurance Group Ltd (ASX: QBE) | $11.61 | $0.39 | $10.92 | -2.6% |
Woolworths Limited (ASX:WOW) | $33.95 | $1.95 | $31.37 | -1.9% |
S&P/ASX 200 | 5352.2 | 5357.5 | 0.1% |
Source: Google Finance; 1Sourced from asx.com.au
Of the above 10 companies, six have exposure to mining and resources. BHP Billiton, Rio Tinto and Fortescue Metals Group are producers of iron ore, a commodity which has seen its price fall over 50% since December 2013.
Coca-Cola Amatil and Woolworths have both suffered significant sell-offs in 2014. This follows concerns of increasing competition and a poor level of consumer confidence.
Are they a buy today?
If you're searching for some solid long-term investments to add to your portfolio, one of the best places to start is in a list of the market's worst-performing stocks. Excluding the iron ore miners, I think the above companies are worthy of closer inspection. However, leading into 2015 there's another ASX stock I think every Aussie investor should buy before any of those above.