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These blue chip stocks are dragging the FTSE 100 index in 2024

By: Invezz
A tale of two countries' different GDP rates

The FTSE 100 index is doing well this year, helped by the performance of UK banks and mining companies. It jumped to a high of £8,036 on Friday, its highest level on record as it joined other indices like FTSE MIB, DAX, and CAC 40 in reaching its all-time high.

FTSE 100 index chart

Firms like Antofagasta, Rolls-Royce, DS Smith, and Intermediate Capital Group have led the charge, rising by over 28% this year. Similarly, banks like NatWest, Lloyds Bank, and HSBC have all jumped sharply this year.

Ocado, St. James Place, JD Sports performance

However, not all FTSE 100 companies have been in the green this year. Some of them have plunged hard this year as concerns about their operations continued.

Ocado’s share price has retreated by more than 51% this year, making it the worst-performing company in the FTSE 100 index. There are concerns about the company’s growth and profitability. Also, investors are worried about its joint venture with Marks and Spencer.

St James. Place’s stock has dropped by over 37% this year as the biggest wealth manager in the UK goes through challenges. The company is seeing weak earnings because of its decision to slash its fees.

Its most recent results showed that the company made a £9.9 million loss in 2023 followed by a £407 million profit a year earlier. Its underlying cash result dropped to £392.4 million in 2023, down from £410 million in 2023.

JD Sports stock has plunged by more than 27% this year after the company published weak financial results. The crisis accelerated after Nike released weak results in March. JD is a big seller of Nike’s products.

Reckitt Benckiser and Burberry’s shares have dived

Meanwhile, Reckitt Benckiser’s share price has retreated by 22% after a jury in the United States found it liable to pay $60 million after a baby died after consuming its Enfamil baby formula. The implication is that the company could face more liabilities.

Burberry’s stock price has retreated by over 15% because of the ongoing slowdown in the luxury market in China. It has been left behind by popular companies like Hermes, LVMH, and Richemont.

Other FTSE 100 companies have underperformed the market this year. The most notable laggards are Airtel Africa, Sainsbury, BT Group, and Land Securities.

On the other hand, many FTSE 100 companies are doing well this year. Banks like NatWest, Lloyds, Barclays, and HSBC have jumped sharply because of their strong earnings in a high interest rate environment.

DS Smith’s shares have surged by 35% after the company received a buyout bid from Mondi in a £5.1 billion deal. 

The post These blue chip stocks are dragging the FTSE 100 index in 2024 appeared first on Invezz

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