Best FTSE 100 index shares in 2023: Rolls-Royce, Centrica, Sage

The FTSE 100 index has underperformed its American counterparts this year. The index has been unchanged while the Nasdaq 100 and S&P 500 have soared by more than 15% and 40%, respectively. 

Most FTSE 100 constituents have been in the red this year, led by mining stocks like Anglo American, Fresnillo, Glencore, and Rio Tinto. These shares dropped as the Chinese economic recovery faltered and as commodity prices slipped. Here are some of the best-performing FTSE 100 index stocks this year.

Rolls-Royce 

Rolls-Royce (LON: RR) share price has jumped by more than 140% this year, making it the best-performing company in the FTSE 100 index. The company has done well as the new CEO implements a sweeping turnaround. 

As we wrote here, Rolls-Royce is also benefiting from the rebounding travel industry and rising orders. Most importantly, the new management is also prioritising cost cuts in a bid to boost its profitability. 

Rolls-Royce is also a major beneficiary of the rising defense spending in Western countries. The UK, the US, and Australia have formed AUKUS, which is spending heavily in nuclear submarines. Also, in a statement on Tuesday, Sweden said that it will boost its defense budget by 30% in 2024 as it seeks to join NATO.

Centrica

Centrica (LON: CNA) is one of the biggest energy companies in the FTSE 100. The firm is known for its ownership of companies like British Gas, Local Heroes, Dyno, and Hive. The Centrica share price has jumped in all months since October last year and has moved to the highest level since July 2017.

The stock jumped as the company continued its record of performance in the first half of the year. Its adjusted profit soared to £2.1 billion from £1.3 billion in the same period in 2022. Its statutory operating profit jumped to £6.5 billion while free cash flow came in at over £1.4 billion. As a result, the company boosted its dividend by 33% and extended its share buyback by £450 million.

Sage Group

Sage Group (LON: SGE) share price has also done well this year as it jumped by more than 37%. The shares have jumped to a record high, meaning they have soared by over 78% from the lowest level in 2022.

As I wrote in this article, Sage Group has done well because of its growing revenue, annual recurring revenue (ARR), and profits. Its ARR rose by 12% to 1.039 billion pounds in the first half of the year. Investors also loved it because of its diversified geographical presence, with most revenues coming from the US.

Other top-performing companies in the FTSE 100 in 2023 are Associated British Foods, Hikma Pharmaceuticals, Ocado, IAG, and Intercontinental Hotels.