After outperforming global markets in 2022, the FTSE 100 has had a limp 2023, with an end-of-year rally just about pushing it into positive territory, while mid-caps have enjoyed a similarly fruitless year.
The chair of the Federal Reserve Jerome Powell did provide some pre-Christmas cheer, as did a surprise drop in UK inflation, but high interest rates have kept markets in London in check while their US and European counterparts have thrived.
So, who were the winners and losers in 2023 in London – a year that saw two of the UK’s best-known names fight back - here's Proactive review:
Rolls-Royce transforms from 'burning platform'
Rolls-Royce Holdings PLC (LSE:RR.) takes the gold medal, motoring 197% higher in 2023, driven by its new chief executive, Tufan Erginbilgic.
‘Turbo Tufan’ as he was later dubbed was installed as chief executive at the start of the year and made waves just days into his tenure after he described the firm as a "burning platform".
The former BP executive set about reviving the group’s fortunes, pledging to transform Rolls-Royce into a “high performing, competitive, resilient, and growing business."
It has been lapped up by the City with price targets heading north of 400p, meaning the company could well be back on the podium again next year.
In second place, is Carnival PLC (LSE:CCL), up 125%.
The cruise operator saw a sharp upturn in bookings as confidence returned to the travel industry helping it book its first quarterly profit since before the pandemic, in September.
Completing the top three is Marks and Spencer Group PLC (LSE:MKS) where shares more than doubled, up 111%, backed by another positive management story as well-regarded CEO Stuart Machin led the revival.
Shrugging aside the cost-of-living crisis, the flagship retailer returned to the FTSE 100 and restored the dividend for the first time in four years in a triumphant year.
City raises a glass to pub operators
Investors were also toasting JD Wetherspoon PLC (LSE:JDW), up 79%, and Mitchells & Butlers PLC (LSE:MAB), up 75%, as punters returned to pubs after the pandemic, shrugging aside the ever-rising price of a pint and a glass of pinot grigio.
Sandwiched between the two pub groups is 3i Group PLC (LSE:III) which has enjoyed a strong year, with investors cheering the 78% rise in the share price and a chunky increase to the dividend.
Nestled just below is AO World PLC (LSE:AO.), up a juicy 75%, as the electricals retailer's turnaround continued, while bulding on the comeback theme, FirstGroup PLC (LSE:FGP) jumped 66% as the bus and rail operator benefited from a post-Covid travel bounce.
One of the more unheralded winners in 2023 was Baltic Classifieds Group PLC (LSE:BCG), which rose 62%.
The online classifieds portals provider in Lithuania, Estonia and Latvia raised earnings guidance, saying the “stars have aligned extremely well” for the business.
Concluding the top ten is West Midlands-based infrastructure outfit Hill & Smith Holdings PLC (LSE:HILS), up 57%, with British Gas-owner Centrica PLC (LSE:CNA) up 52%, just missing out after its share price faded fast after a strong start to the year.
Digitial 9, Spirent and Ferrexpo lead the fallers
That’s enough good news, time to go ‘bah humbug’ and reveal the less mighty corporates who fall under the ‘could do better’ category.
The wooden spoon goes to Digital 9 Infrastructure PLC (LSE:DGI9), down 66%, with a profit warning and scrapped dividend not helping.
The company came under pressure from investors to launch a strategic review, which it belatedly did, but not before its shares tanked, meaning it has been demoted from the FTSE 250 in the latest review.
But it would be unfair not to allow the company its moment in the sun, so it is left in top spot, despite the index exit.
Spirent Communications (LSE:SPT) was another stock in the doldrums, down 55%, after a series of dismal trading updates, while the ongoing war in Ukraine dragged Ferrexpo down 52%.
Dr Martens kicked lower and Mobico off track
Investors continued to give shares in iconic bootmaker Dr Martens PLC (LSE:DOCS) a kicking, down 54%, after a series of profit warnings, while Mobico Group PLC (LSE:MCG) – formerly National Express - slid 43% as higher costs at its North American and UK bus divisions knocked profits down.
Elsewhere, the bleak advertising market took its toll on Future PLC (LSE:FUTR), the publisher of Marie Claire and Country & Gardens, with shares sliding 46%, while biotech outfit PureTech Health (LSE:PRTC, NASDAQ:PRTC, OTC:PTCHF) tumbled 43% in what it called “stormy” markets.
Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) made a late dash for the top 10, slipping 49%, with confirmation that its main share listing would be switching stateside sealing its fate.
FDM Group (LSE:FDM) (FDM Group (LSE:FDM)) fell 41% after warning clients were pushing back spend on contracts.
The top 10 is completed by two big blue-chips.
Anglo American PLC (LSE:AAL) made a late push for inclusion, down 42%, just pipping St James's Place PLC (LSE:STJ) down 39%.
The mining group cut production targets, sparking a 19% one-day fall in the share price, while SJP was dogged by regulatory pressure to amend charging structures.