- Best performing stocks in the first half include lots of consumer-facing names
- Marks & Spencer, Rolls Royce and Aston Martin Lagonda make the list
- Recovery plays among the top 10
The flagship index for the UK stock market, the FTSE 100, may not have kept pace with global peers at the halfway point of 2023 but some stocks in the broader FTSE 350 have really impressed.
The 10 best performers on the index have all delivered returns for the first half of 40% or more in share price terms.
WHO MAKES THE LIST?
Despite the pressures on household budgets from the rising cost of debt and stickier than expected inflation, consumer-facing names dominate the list.
In a sign people are continuing to prioritise spending on travel and leisure, pubs groups Wetherspoon (JDW) and Mitchells & Butlers (MAB), airlines Wizz Air (WIZZ) and EasyJet (EZJ) and cruise operator Carnival (CCL) have all done well.
After a bit of a false start in the travel sector's recovery from the pandemic in 2022, the picture has been brighter in 2023 and operators have been able to pass on their higher costs to customers desperate to get away for a break. Carnival recently reported bookings and deposits at record levels, with deposits of $7.2 billion up 26% from 2019 levels due to higher volumes of passengers and increased capacity.
In the retail sector Marks & Spencer (MKS) has been buoyed by a rebound for physical retail but also a successful turnaround of the business, with the long underperforming clothing side starting to make a meaningful contribution.
RECOVERY PLAYS
Both car maker Aston Martin Lagonda (AML) and aircraft engine maker Rolls-Royce (RR.) are recovery plays too and it is notable that many of the top performers have still performed poorly on a four-year view, typically because they were badly impacted by the pandemic.
How new boss Tufan Erginbilgic can transform the fortunes of Rolls-Royce
Another thing to note is several stocks have stalled in the last few months after a strong first quarter of the year. This is the case for Rolls where, after new boss Tufan Erginbilgic's strong rhetoric helped win over the market, investors now seem to be waiting for signs of more tangible action.
The one name which has delivered positive returns on a year-to-date, three-month and four-year basis is 3i (III). The private equity investor has been rewarded for some smart investments including European non-food discount retailing chain Action, which has seen a big uplift in its valuation.
