Image source: Getty Images
The UK’s front line FTSE 100 The index has been a failure in the last 12 months. In the year ending November 24, 2023, the index gained just 0.2%, excluding cash dividends.
Once again, this leaves London’s main stock index far behind its global counterparts. For example, USA S&P 500 has gained 15% in a year, while the Japanese TOPIC The index is up 19.3%.
A mixed bag
Of course, the stocks that make up the index have generated a wide range of returns. Some were shot out, while others crashed and burned for 12 months.
Of the 99 stocks in the index over a full year, 47 generated positive returns, excluding dividends. These gains range from 1% to a delicious 164.7%. The average gain across all these winners is 23.9%, easily outperforming the FTSE 100.
Therefore, this leaves 52 losers: those stocks with declining values over 12 months. These capital losses range from 0.8% to a nasty 43.8%. The average drop among the 52 losers is 12.8%.
The Biggest Footsie Dogs
My first thought before was: do the worst FTSE 100 results have anything in common? To find out, I tracked these five dog stocks: the index’s worst performers over 12 months:
| Company | Sector | One year return |
| Anglo-American | Mining | -31.4 |
| Croda International | Specialty chemicals | -34.4 |
| entertain | Sports betting and games of chance. | -39.0 |
| Fresnillo | Mining | -41.2 |
| Santiago Square | Investment Management | -43.8 |
At first glance, there is nothing obvious that connects the five failures of the FTSE 100. However, two companies in the same field: miners Anglo-American and Fresnillo – have suffered as prices of several precious and base metals fell again in 2023.
Elsewhere, Croda InternationalProfits were hit due to weak demand in some of its major markets. Only its pharmaceutical division seems to have held up well this year.
entertain, owner of the Coral and Ladbrokes betting brands, has been going from one crisis to another in recent years. Earlier this week he agreed to pay a £585m fine to settle bribery charges in Turkey. Oh.
Lastly, I have long avoided Santiago Square and its shares, wary of expensive product charges and high financial management fees. Now the company’s business model is under scrutiny by the regulator, the Financial Conduct Authority (FCA).
Whats Next?
As an investor with 37 years in the market, I know that making predictions about the future direction of individual stock prices is foolish (not foolish).
Plus, history shows that this year’s dogs can become next year’s stars (and vice versa). Therefore, I won’t be making any predictions about the future moves of these five struggling FTSE 100 stocks.
Finally, for the record, my wife and I bought Anglo American shares in August, following sharp declines in its share price. We paid 2,202.4 pa of shares for our participation. Since then, the stock has gone up and down like a yo-yo (so often is the case with mining stocks!).
