Which stocks stand out after the great autumn sell-off?

October's sell-off contributed to bringing the valuation of the FTSE All-Share down to below historical levels. Tineke Frikkee, manager of Smith & Williamson's UK Equity Income trust, highlights stocks that still look attractive

October 2014 was a roller-coaster month for UK equity investors. On a capital return basis, the FTSE All-Share was down 6% during the first two weeks, to close down a mere 0.9% at the end of the month (see chart). This brought the valuation of the FTSE All-Share below historic levels, with a 12-month forward P/E of 12.7x (compared to the 15-year average 14x), and a 12-month historic dividend yield of 3.5% (compared to the 20-year average 3.2%). At an industry level, however, some sectors were valued above their own historic levels. Consumer goods, for example, looked expensive relativ...