MARKET REPORT: Asos crowned January’s best stock as it soars 72%

Asos was the best performing stock in the FTSE 350 in January as the fashion brand recouped some of its losses.

The stock is up 71 percent so far this year, but remains nearly 90 percent below its 2018 high and 85 percent below its 2021 level.

And yesterday they fell slightly by 0.3 percent, or 2.5 pence, to 872.5 pence.

Aviation stocks also had a strong start to the year – with Easyjet, Wizz Air and British Airways owner IAG among the top five best performing companies – despite falling yesterday.

Easyjet fell 1.4 percent, or 6.8p, to 491.9p, Wizz Air lost 2.6 percent, or 70p, to 2660p and IAG fell 0.4 percent, or 0.6p, to 168.8p.

Other travel companies put on quite a show in January.

Shares of cruise line Carnival are up 32 percent and Tui’s 28 percent.

But most of these stocks have failed to return to pre-pandemic levels. And yesterday Carnival was down 2.1 percent, or 16.2 pence, to 767.6 pence, while Tui lost 1.2 percent, or 2.05 pence, to 168.9 pence.

On the other hand, Direct Line has had the worst start to the new year. The stock fell 19.8 percent in a month that saw the insurance giant issue a profit warning, scrap its dividend and see CEO Penny James leave.

Yesterday, shares crept up 0.1 percent, or 0.1 pence, to 177.45 pence.

Darktrace is close behind. Short sellers betting against the cybersecurity company have sent its shares down 19 percent. They lost 4.5 percent, or 9.8 pence, to 210.2 pence yesterday.

Online betting group 888 was also close to the bottom of the pile. Shares plunged 17 percent, with investors dumping their shares after CEO Itai Pazner made a shock exit on Monday.

The gambling giant also launched an investigation into suspected money laundering of VIP customer accounts in the Middle East. Yesterday, 888 was down 3.9 percent, or 2.9 pence, to 71.95 p.

AJ Bell investment director Russ Mold said it was striking how many consumer-related stocks were among the top 20 best-performing stocks so far this year, including retailers, travel agencies and airlines.

“These stocks were all flat on their backs in the fall, fearing that the cost-of-living crisis would erode consumers’ ability and willingness to spend,” he said.

‘But since then energy prices have fallen, the government has intervened with subsidies and we have had a relatively mild winter, while the inflation rate could fall further in the first half of the year.

“All of that has boosted sentiment towards what was an unloved group of stocks.”

Capping off a rollercoaster month for the London stock market, the FTSE 100 fell 0.17 percent, or 13.17 points, to 7771.7 and the FTSE 250 fell 0.42 percent, or 83.75 points, to 19853, 45.

This left the blue-chip index just over 100 points behind the all-time high of 7877.45.

In efforts to boost the hydrogen economy, the chemical group Johnson Matthey is joining forces with an American company that focuses on the development of fuel cell systems.

Johnson Matthey and Plug Power have pledged to invest in a new production capacity of up to ten gigawatts for catalyst coating membranes (CCMs) in the US, which is expected to begin production in 2025.

Shares of Johnson Matthey rose 4.1 percent, or 88 pence, to 2,256 pence, and Plug Power rose 3.7 percent, or 0.58 pence, to 16.15 pence.

Also in the hydrogen world, shares in ITM Power rose 13.4 percent, or 11.98 pence, to 101.3 pence as it announced plans to cut headcount by a quarter in a bid to cut costs.

Note and passport maker De La Rue needs a finance boss after Rob Harding steps down to become chief financial officer at payment service provider PayPoint.

Shares fell 0.5 percent, or 0.3 pence, to 66.6 pence. PayPoint lost 0.8 percent, or 4p, to 518p.