Here are the worst FTSE 100 shares of 2024

By:
on Feb 12, 2024
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  • The FTSE 100 index has underperformed the market this year.
  • The main laggards in the index this year are Ocado, Endeavor, and Airtel Africa.
  • The top performers in the FTSE index are Flutter and GSK.

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The FTSE 100 has continued to lag behind its global peers in 2024. It is stuck at £7,565, where it started the year, and is a few points below the year-to-date high of £7,765. In contrast, other major indices like the S&P 500 and Nasdaq 100 have jumped to their record highs.

FTSE 100

FTSE 100 index chart

JPMorgan is bullish on UK stocks

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Analysts at JPMorgan came out with a report on Monday calling the FTSE 100 index a bargain. It cited its attractive dividend yield, which is higher than that of the global indices. The analysts also hinted that the index will likely rebound if commodity prices recover.

However, it is worth noting that in the past, bullish forecasts for UK stocks have not done well. Most importantly, the index underperformed its global peers in the recent commodity supercycle which pushed most of them higher.

The FTSE 100 index has lagged behind its global peers because of the nature of its companies. Unlike the S&P 500 and Nasdaq 100 indices, it does not have major technology companies. The only tech firms in the index are Rightmove and Sage Group. 

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Further, it has lagged because of the UK government policy in the past few years. The UK moved away from the European Union while the conservative party has embraced windfall taxes on the energy sector. Some politicians have also suggested these taxes on the banking sector. 

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Liquidity in the UK has also dried up in the past few years as many big investors turn their focus to the US. For example, big UK investment companies like Bailie Gifford and Legal & General have allocated most of their funds to US equities. This explains why several UK companies are thinking about delisting from London.

Flutter Entertainment has listed in the US and is considering making the US its primary listing, a move that will remove it from the FTSE 100 index.

Top FTSE 100 laggards

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Most companies in the FTSE 100 index are in the red this year. JD Sports share price has crashed by more than 36% in 2024, making it the worst performer in the index. Its crash started after the company published a weak financial statement in January. Weak results by companies like Adidas and Nike have not helped.

Ocado stock price has dropped by 28% as concerns about its business continued. As I have written before, some investors believe that Ocado is a highly overvalued company. Others are concerned about its long history of loss-making

Endeavour Mining share price has plunged by 25% while Airtel Africa, Fresnillo, Glencore, and BT Group are the other top laggards. Glencore is a notable company in this list because of the falling commodity prices. The company has a huge stake in metals like copper, nickel, and lithium.

On the other hand, the top FTSE 100 index companies this year are Flutter Entertainment, GSK, BAE Systems, and Beazley. These stocks have all jumped by almost 10% this year.

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