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As I write, there are only three trading days left for the London stock market in 2023. Unfortunately, it hasn't been a great year for blue-chip stocks. FTSE 100 and other UK market indices.
For the record, Footsie has earned 2.7% over the past year, excluding dividends. Meanwhile, mid-cap FTSE 250 The index has performed slightly better, adding 4% since December 28, 2022. And it's a similar story for small caps.
A mix of returns
Of course, even if an index has performed weakly, some of its stocks may have performed extremely well.
In fact, out of 100 Footsie shares, 69 have gained value in the last 12 months (one share is unchanged). These profits range from almost 232% to almost zero, with the average profit being a tidy 27.3%.
This leaves 30 losers, whose declines range from 0.4% to painfully close to 40%. The average loss among these FTSE laggards is 14.5%.
So, while most blue-chip stocks have delivered positive returns this year, outsized declines among some large-cap companies have held back the overall index.
The stars of the FTSE 100
It's time to reveal the five best-performing stocks in the UK's elite index over the past year. Here they are, ordered from highest to lowest gain:
| Company | Sector | One year change | Five year change |
| Rolls-Royce holdings | Aerospace and defense | 231.9% | 9.6% |
| Marks & Spencer Group | retail | 126.6% | 9.6% |
| Group 3i | Private capital | 83.3% | 213.0% |
| wise group | Enterprise software | 57.8% | 100.1% |
| Associated British foods | Retail and food processing. | 50.8% | 11.7% |
The fabulous five
My table shows that historic engineering company Rolls-Royce Holdings has generated the largest profit for shareholders since December 28, 2022. On the other hand, its shares have risen less than 10% in five years, after being hit hard during the coronavirus crisis of 2020-21.
The second place is for Marks & Spencer Group, once the favorite retailer of the British middle classes. Following a successful turnaround strategy, M&S returned to the FTSE 100 in August, four years after being relegated. However, M&S shares have also risen less than 10% in half a decade.
The bronze medal goes to a private equity company Group 3i, whose shares have consistently beaten the broader index over long periods. Coincidentally, with a gain of 213% over five years, 3i stock is also the index's third-best gainer over this period.
In fourth place is the Newcastle-based software provider. wise group, whose shares have risen just under 58% in 12 months. And they have also beaten the broader index in five years, having almost exactly doubled, against a 14.3% rise in the FTSE 100.
The fifth and last place is the first Associated British foods, owner of the popular Primark chain, as well as several food and grocery businesses. However, while his stock has outperformed the index for one year, it has lagged the market for more than five.
Two for my watch list
Although my wife and I have 15 different holdings in the FTSE 100, we don't own any of the fabulous five mentioned above. However, I would like to add more UK growth stocks to our great value family portfolio.
For their long-term outperformance in the UK market, I like the look of the 3i and Sage. Therefore, I added both stocks to my growing watchlist of top stocks for 2024.
