Top 10 early 2019 FTSE 100 risers and decliners

Since the onset of 2019, the FTSE 100 has exhibited a robust upswing of over 10%. This offers a glimmer of hope following a challenging 2018 when the index endured an 8.7% downturn, leading to substantial losses for numerous companies. In the sections that follow, we will delve into the standout victors and underperformers in the UK’s stock market thus far.

FTSE100 Performance

FTSE Advancers and Decliners The FTSE 100 index has kicked off the year on an exceedingly positive note, with only a handful of companies (precisely 13) experiencing a decline in their market value. Let’s now closely scrutinize the top 10 FTSE 100 gainers and the most significant FTSE fallers in Q1 2019. Outstanding Performers: FTSE 100 Gainers For the initial three months of 2019, the roster of FTSE’s top performers reads as follows:

1. Ocado Group

The renowned English online supermarket, Ocado, delivered an exceptional performance in 2018. The company’s accomplishments were driven by an agreement to license its technology to the US supermarket giant Kroger, in addition to securing contracts with major European retailers. The surge in Ocado’s share price throughout the year has continued into the first quarter of 2019. The recent positive rally in Ocado’s share price is attributed to a fresh joint venture inked with Marks & Spencer, finalized in late February.

2. EVRAZ

Taking the second spot among the FTSE 100 gainers and losers is EVRAZ, a steel-making and mining company partly owned by Roman Abramovich. With favorable returns of 41.3% in 2018, the company reported a net profit of $2.5 billion, a significant increase from $759 million in 2017. Investors also harbor the belief that EVRAZ’s exposure to sanctions imposed on Russia, where the company operates, has been notably reduced. Roman Abramovich and his associates divested shares worth £151 million, reducing their collective ownership stake to less than 50%.

3. Micro Focus

Despite encountering challenges in 2018, primarily stemming from the integration of Hewlett Packard’s enterprise business, Micro Focus is gradually regaining favor among investors. Although the acquisition, which expanded the company’s business size fourfold, presented unexpected difficulties, Micro Focus successfully navigated these obstacles. Moreover, the tech group announced the completion of its $400 million share buyback program, which has now been extended by an additional $110 million.

4. 3i Group

3i Group, a multinational powerhouse in the private equity and venture capital realm, has demonstrated remarkable resilience during a period of considerable market volatility. By the end of 2018, the company’s net asset value had risen to £8.02 from £7.76 just three months earlier, with the total return approaching 14%. The company’s Chief Executive, Simon Borrows, expressed confidence as he stated, “As we approach the conclusion of our fiscal year, we remain optimistic that our diversified portfolio is well-positioned to deliver further robust growth and withstand market turbulence amid these times of political and economic uncertainty.”

5. BAT

Among all FTSE 100 constituents, British American Tobacco (BAT) experienced the most significant decline in 2018. BAT’s shares tumbled by a staggering 50.2%, largely due to a sweeping crackdown on cigarettes initiated by the US Food and Drug Administration. Today, the tobacco industry is undergoing a resurgence. With the emergence of vaping and the legalization of cannabis, British American Tobacco and its counterparts have uncovered new avenues for growth.

Laggards: FTSE 100 Decliners For the first quarter of 2019, the list of FTSE’s most substantial decliners is as follows:

1. TUI

Since reaching its all-time peak in May 2018, TUI’s shares have plummeted by 56%. The company anticipates a slowdown in sales during the summer of 2019. According to TUI’s projections, their earnings would decline by over a quarter if their Boeing 737 Max aircraft (15 out of 150 planes in the company’s fleet) are not back in operation by July. The Boeing 737 MAX 8 aircraft were grounded globally following two accidents.

2. Centrica

Year-to-date, Centrica’s share price has slumped by 19%, and the company’s outlook remains highly uncertain. Smaller competitors are undercutting Centrica’s offerings, siphoning off its customers. In 2018, the company saw a loss of nearly 700,000 customer energy supply accounts. Additional challenges stem from reduced earnings due to the British government’s energy price cap and diminished production.

3. Pearson

Educational content provider Pearson closed out 2018 with a positive share price change of 27.5%. However, investor confidence in the company’s future has waned, resulting in a 15% decline by the end of Q1 2019. After grappling to find a buyer over the past year, Pearson announced in February its intention to divest its US schools course business for $250 million. The company aims to return to growth from 2020 onwards.

4. Sainsbury’s

Recently, Sainsbury’s has slipped to third place in the UK supermarket hierarchy, trailing behind Asda. In March 2019, the company’s sales declined by 1.8%, reducing its market share to 15.3%, lower than in 2018. Both supermarket chains are still struggling to secure approval from the UK’s regulator for their £7 billion merger. Last month, Asda and Sainsbury’s proposed selling off up to 150 stores and 38 petrol stations to facilitate the deal, although its outcome remains highly uncertain.

5. Fresnillo

In the previous year, shares of precious metals mining group Fresnillo plummeted by 39.8% due to declining silver prices. In the current year, the Mexican silver and gold miner anticipates challenging times ahead, with expectations of higher inflation and further drops in metal prices. According to the company’s Q1 report, silver production declined by 15%, and gold production fell by 9%.

In Conclusion

Whether it’s the rise or fall, the best or worst, the individual shares mentioned above, and the FTSE 100 index itself, offer unique trading opportunities daily.

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