FTSE 100 Surpasses 10,000 Points in 2025, Marking Strong Year for UK Markets
The FTSE 100 crossed the symbolic 10,000-point level in 2025, reflecting a notable upward trend for the UK's largest companies. This marked the FTSE's best year since 2009, with a 21.5% rise for the index.
The strength of the index was driven by sectors such as banking, mining, defence, oil and gas, pharmaceuticals, and consumer brands, although it notably excluded major tech giants.
Defence stocks, led by Rolls-Royce, benefited from increased European defence spending, while mining saw a boost from safe-haven demand for gold and a rally in silver prices. Fresnillo emerged as the FTSE 100's top performer in 2025, with shares rising over 360%.
Banks and financials also performed strongly, aided by a tax-friendly budget. Lloyds shares increased by around 80%, Standard Chartered and Prudential both rose about 70%, and Barclays climbed above 60%.
In the pharmaceutical sector, AstraZeneca and GSK achieved strong performances despite the absence of GLP-1 weight-loss drugs. Their success was supported by a UK–US pharmaceutical deal that increased NHS drug spending.
Many FTSE 100 constituents, including HSBC, Anglo American, BAE Systems, Shell, Unilever, and AstraZeneca, are international companies earning the majority of their revenue abroad.
Meanwhile, the FTSE 250 rose approximately 9% in 2025, indicating some divergence between the segments of the market. Forecasts for 2026 suggest that inflation and interest rates are expected to fall, fostering cautious optimism for the coming year.
