FTSE 100 stocks: winners and losers in Q1 2023

Volatility continues to plague financial markets, and so do some of the biggest FTSE 100 stock has felt the ground shaking. The index as a whole could do better than its US counterpart, for example S&P 500 and Nasdaq 100 in 2022. But in the final stages of the first quarter of 2023, it is lagging behind, falling by almost 2% since the beginning of the year.

Let’s take a look at Footsie’s best and worst players over the last three months.

The laggards

Although banks have been battered in recent weeks, none have appeared in the top five losers of the FTSE 100 so far this year (Although Barclays number six). However, it seems that the mining industry is starting to see its cycle.

Commodities typically outperform during periods of inflation. But it seems that this upward force is not enough to offset the rapid decline in metal prices as the Covid supply chain disruption is almost over. Mining stocks enjoyed some significant tailwinds in the months following the pandemic. But like cyclical industries, prices have started to fall, taking dividends in the process.

How about Ocado? Most of the consumer staples business has been doing well. But the heavy investment in warehouse automation is taking its toll. The company appears to be making solid operational progress. Unfortunately, that loss has also increased from £176.9m in 2021 to £500.8m in 2022.

In Beazley’s case, the insurance business as a whole continues to grow. But what seems to be troubling investors is the loss they are incurring in their investment portfolios. Despite outperforming most stock market indexes last year, the latest results show a 2.1% decline in the asset portfolio. That may not seem like much. But it translated into a loss of £179.7m which reduced pre-tax profit by 50%.

Win FTSE 100 shares

While the UK’s flagship index may be underwhelming, some constituents are showing how they are doing.

After collapsing in the pandemic, Rolls-Royce is back with a vengeance and new leadership. The aviation industry’s recovery continues to cause demand for the company’s engine maintenance services to stagnate. And while many challenges still lie ahead, the £2bn increase in free cash flow is quite impressive.

Meanwhile, JD Sports seems to be happy with investors these days. The company is navigating a less-than-optimal business environment. But management recently unveiled a new strategy to return to double-digit growth and margins over the next five years. For Flutter Entertainment, the company made solid steps to expand into the U.S., helping profits rise 27% and losses fall 26%.

Finally, Associated British Foods benefited from inflation (as the price of ingredients like sugar continued to rise), and a strong performance at Primark. And BT’s 5G and fiber-to-the-premises rollout is giving investors confidence for the long term, especially now that the group is on track to deliver £3bn in annual cost savings.