Best and worst FTSE 100 shares of 2019

We round up the best- and worst-performing FTSE 100 shares of 2019. 

Despite being a year defined by political uncertainty and, at times, chaos, the FTSE 100 index was able to return investors a healthy 18.8% in 2019 in total return terms (including dividends).

JD Sports was the best performer on the blue-chip index, providing investors with a total return of 138% to market close on 27 December 2019.

According to Richard Hunter, head of markets at interactive investor, this was driven by the optimism surrounding the company’s international expansion plans. He points out “the company opened 23 stores across Europe in the year, seven in Asia Pacific and through its acquisition of Finish Line in the US, is now building a presence in a potentially rewarding market there.”

Next on the list was AVEVA, which returned investors 94.7%. The Cambridge-based industrial software group had previously been labelled a buy by Mercantile investment trust manager Guy Anderson.

Third on the list was the London Stock Exchange, with a return of 89.7%. This was largely driven by the attempted takeover of the company by the Hong Kong Stock Exchange. 

Next also had a solid year, returning investors 78.1%. According to Russ Mould, investment director at AJ Bell, the strong performance of the company “proved that retailers can thrive if they offer the right product, at the right price point and in the multi-channel format that suits consumers best.”

Ocado had another strong year, returning investors 58.6%. Mould says: “Ocado’s plan to transform itself into a software play, via global licensing deals and the part sale of its food retailing arm to Marks & Spencer, kept that stock in favour.”

Housebuilders also performed well. Mould puts this down to their strong dividend payment policies. He says: “Their net cash balance sheets and ongoing programmes to return cash to shareholders via dividends or share buybacks, or even both, generated interest, especially as their yields stood out in a low-interest-rate world.”

At the same time, notes Hunter, there was a “Boris bounce” following the general election result provided a further relief rally, with the price of Barratt Developments, Taylor Wimpey and Persimmon rising 13%, 11% and 7% respectively over the week after the election alone.

The worst performers on the FTSE 100

Hunter points out that the real underperformers of the index would have been relegated throughout the course of the year at the various reshuffles. He notes: “During 2019 the FTSE 100 waved goodbye to companies such as Direct Line, Micro Focus, Wood Group and perhaps most famously, Marks & Spencer.”

Two more of the worst performers were Hiscox and Fresnillo. Both stocks were relegated on 23 December. 

The worst performer still in the index, however, has been NMC Health. The United Arab Emirates’ health company is a late edition, suffering large falls in December after short-seller company Muddy Water’s released a report raising doubts about the company’s financial statements.

Pearson lost investors 28.5%. The company issued a profit warning in September. According to Mould: “This was the latest in a string of trading alerts from the company.”

Source: Refinitiv data. *Total return from 31 December 2018 to 27 December 2019