UPDATE: The FTSE 100 has just concluded its most successful year since 2009, soaring by 20% and reaching record highs throughout 2025. With some blue-chip stocks achieving remarkable returns, the pressing question on investors’ minds is whether these shares can replicate their success in 2026.
Among the standout performers, Fresnillo (LSE:FRES) led the charge with an astonishing 403% increase in share price, fueled by a significant rise in gold and silver prices—up 65% and 150%, respectively. While the outlook for precious metals might not match last year’s explosive growth, experts predict that ongoing economic and geopolitical uncertainties could still enhance demand for these safe-haven assets.
As a potential roadblock, the inherent risks associated with mining stocks could temper expectations. Production issues often threaten profitability, yet Fresnillo’s massive gains demonstrate the potential for substantial returns when metal prices climb.
In the banking sector, Standard Chartered (LSE:STAN) saw its shares rise 83% last year. Analysts remain optimistic about its prospects for 2026, even amidst potential turbulence from a struggling Chinese economy. The bank, which operates extensively across Asia and Africa, is poised for continued growth as these regions recover from pandemic-induced setbacks.
Recent reports indicate that Standard Chartered expects operating income for 2025 to come in at the “upper end” of a 5% to 7% growth range. With a robust balance sheet, the bank is well-positioned for investments and possible share buybacks, which could further boost its stock price.
Meanwhile, Babcock International (LSE:BAB) generated headlines as one of the top three performers in the FTSE 100, with a remarkable 143% increase in share value. Investors have begun to recognize its undervalued status in the defense sector, particularly as global defense spending is expected to rise amid ongoing geopolitical tensions.
Although a potential peace deal in the Russia-Ukraine conflict could momentarily affect defense contractors, analysts believe that NATO’s commitment to rearmament, driven by concerns over Russian and Chinese ambitions, will sustain demand for Babcock’s services. The company reported a 7% organic sales growth between April and September, signaling strong momentum.
As we advance into 2026, market analysts are keenly watching these companies’ performances. With the FTSE 100’s strong foundation and the potential for continued gains in these key sectors, investors are urged to stay informed on the latest developments.
Stay tuned for further updates as market dynamics continue to evolve.
