Britain’s stock market has chalked up its strongest annual performance since the aftermath of the financial crisis.
The FTSE 100 closed the final trading session of the year slightly lower, down 9 points, or 0.09%, at 9,931. Despite the modest dip on the day, the blue-chip index delivered a gain of 21.6% over the course of 2025 — its best annual return in 16 years.
The benchmark ended 2025 with a total market capitalisation of around £2.4 trillion, according to data from FTSE Russell.
Mining stocks, defence firms and banks were the standout performers, helping London’s market outpace Wall Street over the year.
Precious metals producer Fresnillo was the standout performer on the FTSE 100 in 2025, with its shares surging around 450% over the year as record highs in gold and silver prices turbocharged earnings expectations.
Rival miner Endeavour Mining also enjoyed a stellar run, rising about 170%, while Airtel Africa emerged as the second-best performer in the index overall, with its shares jumping roughly 210% during the year.
FTSE 250 rises 9%
While the FTSE 100 is dominated by multinational companies and is less reflective of the domestic economy, the more UK-focused FTSE 250 provides a clearer gauge of home-grown conditions. That index ended 2025 with a solid gain of around 9%, underscoring a broadly positive year for UK equities despite ongoing economic headwinds.
Dan Coatsworth, head of markets at AJ Bell, said the FTSE 100 “has had precisely the right ingredients desired by investors in a year full of political, trade and market uncertainty”.
He added:
“This year’s success for the blue-chip index is not a flash in the pan.
“The FTSE 100 has delivered positive returns in eight of the past 10 years, averaging 9.1% annually over that period including dividends.
“This kind of performance reinforces the attraction of investing over the long term.
“There may be years when performance disappoints, but history suggests it’s worth pursuing.”
