The UK's premier stock market index, the FTSE 100, has delivered its most impressive annual performance in over a decade and a half, closing out 2025 with remarkable gains that outstripped its international peers.
A Year of Robust Growth Against the Odds
From the closing bell of 2024 to the end of 2025, the FTSE 100 surged by 21.5 per cent. This represents the index's most successful year since 2009, when markets were rebounding from the depths of the global financial crisis. The achievement is particularly notable given the year was punctuated by political and economic headwinds, including market volatility triggered by tariff announcements from US President Donald Trump.
This performance firmly placed the London benchmark ahead of its major rivals. Both the pan-European Stoxx 600 and the US's flagship S&P 500 and tech-heavy Nasdaq Composite indices were outperformed by the UK's blue-chip index throughout the year.
Sectors and Stocks Leading the Charge
The substantial gains were not spread evenly but were driven by powerhouse performances in specific heavyweight sectors. British mining, defence, and financial shares were at the forefront of the rally.
Notable individual performers included precious metals miner Fresnillo, engineering and defence giant Rolls-Royce, and high street banking leader Lloyds Banking Group, all of which posted substantial growth and contributed significantly to the index's upward trajectory.
IPO Activity and the Delisting Trend
Beneath the headline index growth, the London Stock Exchange experienced a stronger year for Initial Public Offerings (IPO activity), indicating renewed, albeit cautious, interest in the UK public market. However, this positive signal was tempered by a continuing trend of listed businesses choosing to leave the exchange.
A number of companies opted to delist, seeking opportunities on foreign markets or moving into private ownership, highlighting ongoing competitive challenges for the London market in retaining large listed entities.
In summary, the FTSE 100's stellar 2025 demonstrates a resilient UK market capable of delivering strong investor returns, even in a climate of slow domestic economic growth and international uncertainty. The concentrated success in commodities, defence, and finance underscores where global investor confidence currently lies in the UK plc story.
