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FTSE 250 shares have been on a roll over the past six months, rising more than 10% since October 2022. Unfortunately, this upward momentum appears to have dissipated during the first quarter of 2023.
The index is down just over 3% since the start of the year. But they can not speak for all its constituents. So let’s take a look at the biggest winners and losers of the last three months.
Stragglers
While the FTSE 250 may be average overall, some companies in many industries are not so lucky.
| FTSE 250 stocks | Industry | Q1 2023 performance | 12 months performance |
|---|---|---|---|
| 888 Ownership | Consumer Discretionary | -36.8% | -70.8% |
| Direct Line Insurance | Insurance | -34.6% | -48.7% |
| Ferrexpo | mining | -34.3% | -32.9% |
| Spirent Communication | Telecommunications | -32.8% | -26.8% |
| chase | Industry | -29.8% | -24.6% |
The best performing stock in the FTSE 250 so far is 888 Holdings. Gaming companies have steadily lost almost 90% of their market cap since the end of 2021 on the back of major fines from the UK Gambling Commission. Needless to say, news about money laundering is not good for business. And when the company is in the process of asking the house to be under a new leader, the jury is still out on whether the reputation can be restored.
For Direct Line, the insurance business suffers from the inflationary cost of repairing cars for its automotive insurance business. As a result, profits fell back into the red from a gain of £446m in 2021 to a loss of £45.1m in 2022. Coupled with the delayed dividend, shareholders rushed out in January.
Like many mining stocks, Ferrexpo is suffering from headwinds in iron ore prices. But the more pressing problem is that most of the operations are in Ukraine and the war continues to rage. With performance unable to recover until after the war ended, its share price continued to decline.
Meanwhile, macroeconomic conditions reduced demand for Spirent Communications’ test and warranty services, causing sales to stagnate. And while Hunting posted its full-year results for 2022, the current slump in natural gas prices has many investors worried that this momentum won’t continue into 2023.
Win FTSE 250 shares
Of course, not all UK businesses are in the gutter this quarter.
| FTSE 250 stocks | Industry | Q1 2023 performance | 12 months performance |
|---|---|---|---|
| JD Wetherspoon | Restaurant | +49.8% | -16.5% |
| John Wood Group | Industry | +49.6% | +21.3% |
| ASOS | Consumer Discretionary | +44.7% | -53.3% |
| Aston Martin Lagonda | Automotive | +43.2% | -38.3% |
| easyJet | Travel & Leisure | +37.5% | -12.7% |
Many people sought refuge in pubs from the cost-of-living crisis that helped JD Weatherspoon bounce back from the pandemic. Engineering company John Wood has received several cash offers that have sent shares soaring. And fashion brand ASOS is making progress on its turnaround plan after the tailwinds of the pandemic develop into headwinds.
What about Aston Martin? Luxury carmakers seem to have succeeded in passing rising costs to their wealthiest customers while increasing volume. Corporate debt continues to be a problem. But the company is trying to get back to what investors want.
And finally, for easyJet, the continued recovery in the travel industry is fantastic. The low-cost carrier is still in the red with £133m. But this is an £80m improvement compared to a year ago.
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