Flagship UK stock index has best year since 2009 - outperforming rivals

The UK's flagship stock index has had its best year since 2009 after a series of record-breaking days.

The Financial Times Stock Exchange (FTSE) 100 ended the year up 21.5% compared to the start. It means the share price of the publicly traded companies making up the FTSE 100 had the greatest annual increase in 16 years.

The FTSE 100 comprises the hundred most valuable companies listed on the London Stock Exchange. Notable constituents include lenders such as Barclays, Natwest, HSBC and Lloyds and supermarket chains Tesco, Marks & Spencer and Sainsbury's.

Read more:Snowfall expected across much of UK as new warnings issuedHow a healthy diet is helping patients recover from alcohol abuse The index is also largely made up of mining and international oil and gas companies. There was a series of record-breaking moments for the UK's benchmark index across the 12 months, the most recent of which was on 30 December.

There were 41 all-time high closes for the FTSE 100 in 2025, according to data from the London Stock Exchange Group (LSEG). Why? It has been boosted by a weak pound at points over the year, which made it good value to buy shares priced in sterling, as FTSE 100 companies tend to be.

Many of the mining giants have done well as minerals like gold, silver and copper reached new highs. Investors moved money into the metals as they were perceived as safe investments while markets were volatile.

The promise of interest rate cuts by the Bank of England also helped lift the FTSE 100. It had also benefited from investors looking to companies outside of the US after President Trump's trade war against China, and much of the world, began in earnest on 2 April on his so-called Liberation Day.

Many trade deals have since been agreed. How does it compare? The UK's top-flight index also outperformed European and US rivals.

France's CAC 40 index gained more than 10% in 2025, while the pan-European Stoxx 600 increased nearly 16%. Germany's DAX also rose 21.5%.

After a year that saw tech company valuations soar, as investors sought to benefit from an anticipated artificial intelligence (AI) boom, Wall Street's S&P 500 rose 17%. The S&P 500 is the US index containing companies relied on to be stable and profitable, and contains the Magnificent 7 highest-performing tech companies.

Among the Magnificent 7 is the most valuable company in the world, AI-chipmaker Nvidia, as well as Tesla, Amazon, Apple, Meta, Microsoft, and Google's parent company, Alphabet. Despite hovering near the symbolic 10,000 mark, the FTSE 100 failed to meet the milestone and closed the year at 9,931..