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So far, 2023 has been a bumpy year for the FTSE 100. On 16 February, the blue-chip index hit an all-time high of 8,047.06 points. It has been nowhere near that peak since.
As I write (on Monday afternoon, 27 November), the index stands at 7,471.65 — down 7.2% from its top. This leaves the index flat over one year and up a mere 7% over five years. However, these returns exclude cash dividends, which are generous from many Footsie firms.
The FTSE 100’s latest flops and fallers
What’s more, the Footsie is down 0.7% over the past six months. This means UK stocks have basically gone nowhere since late May. But at times like these — when stock markets are sluggish and subdued — I enjoy hunting for unloved, unwanted, and undervalued shares.
Almost daily, I search for ‘FTSE 100 fallers’ — aiming to find fallen angels among London’s dead ducks. Earlier today, I tracked down the Footsie’s biggest flops over the past six months. Here they are, together with their share-price changes over three timescales:
| Name | Sector | Six months | One year | Five years |
| Croda International | Speciality chemicals | -26.4 | -34.4 | -3.5 |
| Rentokil Initial | Pest control and hygiene | -27.7 | -16.7 | +42.9 |
| Burberry Group | Luxury fashion | -30.3 | -27.0 | -16.0 |
| Entain | Sports betting and gambling | -38.1 | -39.0 | +8.5 |
| St James’s Place | Investment management | –40.1 | -43.8 | -33.9 |
My table shows that the Footsie’s worst performers have seen their share prices slump by around 26% to 40% in the past half-year. That’s massively below the 0.7% gain the wider index made.
Interestingly, all five FTSE 100 flops come from very different market sectors. For example, chemicals company Croda International‘s sales boomed during the pandemic, but have suffered in 2022/23 due to inventory destocking by clients.
Likewise, shares in Rentokil Initial — known as the ‘ratcatcher’ in the City — have bombed due to lower demand in its US operations. That said, its share price has rebounded 15.7% above its 52-week low of 387.8p, hit on 27 October.
Burberry Group has also been hit after revealing slowing sales among its well-heeled global client base. This slowdown has also been commented on by other major European luxury brands.
Entain, which owns betting brands Coral and Ladbrokes, has seen its share price crash by over 62% since the highs of September 2021. Battered by legacy issues, it agreed last week to pay a £585m fine to settle bribery charges in Turkey. Yikes.
Lastly, St James’s Place is on the ropes following news the Financial Conduct Authority (FCA) is looking into its fees and charges for financial products and advice. Personally, I’m delighted that I’ve always avoided this firm’s services, as well as its shares.
From trash to flash?
Without further in-depth research, I am unwilling to buy any of these sinking FTSE 100 shares yet. However, history — and my 37 years in the market — have taught me that today’s trash shares do sometimes turn into tomorrow’s flash stocks.
Indeed, one or more of these late-2023 dogs may well go on to be among 2024’s stars. That said, I must balk at predicting which will be future FTSE 100 winners (or losers)!
