After seven consecutive months of decreases for the Liv-ex Fine Wine 1000, the index turned and posted a 1.38% return in May.
A contributor to this performance was the Fine Wine 50 which rose 1.76%, its best monthly performance since October 2016. Its two-month performance (rose 0.8% in April) means it is no longer is the weakest sub-index of the Bordeaux 500 year on year – an accolade now held by the Second Wine 50.
Currency helped the market in May; Sterling softened gradually, increasing the attractiveness of wines when viewed in alternative currencies.
Within the Liv-ex 1000, all sub-indices posted positive returns for the month. Returns were led by the Rest of the World 60 (1.84%), followed by the Bordeaux Legends 40 (1.83%) and the Italy 100 (1.81%).
The month was marked by a further increase in liquidity – active markets increased by 2.4% in May, taking the year-to-date growth to 14%. Distinct wines traded (LWIN11) also grew – up 5.3% – as the market continued to broaden.
Automated trade accounted for 32.8% of transactions in the month, slightly less than in April. This was also reflected in the average price per bottle traded, which rose 20% – hinting at a return of confidence within the trade.
Year to date, the Italy 100 remains the best performing index (up 1.53%) followed by the Rhone 100 (up 0.49%) with the remaining sub-indices still lying in negative territory.