The FTSE 100 index was left in the dust by its European peers in the first quarter of the year. Most European indices like the German DAX and Italy’s FTSE MIB surged to their all-time highs while the FTSE 100 index rose by less than 3%.
But the Footsie is catching up with these indices. It has surged by more than 7.62% from its lowest point in 2024 and is now trading at its highest level since February 2023. It also flipped the crucial resistance level at £7,762 into a support level.
Rolls-Royce share price surged
The biggest winner in the FTSE 100 index is Rolls-Royce Holdings, whose stock has jumped by over 41% this year. It has been the biggest driver for the index as it jumped by more than 1,000% from its lowest level during the pandemic.
Rolls-Royce (LON:RR) has joined other industrial giants in this rally. Most industrial companies like Emerson (NYSE:EMR) Electric, Airbus, and Illinois Tool Works (NYSE:ITW) have all jumped sharply in the past few months.
Rolls-Royce is going through numerous tailwinds. The civil aviation industry is booming while demand for defense products is going up as risks rise. It also has a new management team that is focused on more productivity and profitability.
There are signs that the stock has momentum to continue going up in the second quarter. This trend will depend on the company’s annual general meeting set for May 23rd.
Beazley is doing well
Beazley (LON:BEZG) share price also did well in the first quarter as it jumped to 700p in March. It has risen by 30% in 2024, making it the second-best performing company in the FTSE 100 index.
Beazley, an insurance company, did well in 2023. Its financial results showed that its insurance written premiums rose to $5.6 billion in 2023. Its net investment income rose to $480 million while its cash and investments rose by almost $2 billion to $10.4 billion.
The company is doing well as demand for specialty insurance jumped as global trade continued its post-lockdown recovery.
DS Smith
DS Smith share price has done well this year as it became a takeover target. Mondi (LON:MNDI) was the first company to propose a buying the company in a deal valued at over £6.2 billion. And this week, International Paper announced a bigger bid for the packaging company, raising the possibility of a bidding war.
Therefore, there is a likelihood that the DS Smith stock price will continue doing well this year if this bidding war happens. There is also a risk that the buyout could be challenged by UK regulators.The other top-performing companies in the FTSE 100 index are BAE Systems (LON:BAES), NatWest (LON:NWG), Antofagasta (LON:ANTO), Melsrose, and Intercontinental Hotels. Notably, UK banks, which have a big weighting in the stock have also done well, helped by high-interest rates.