Investors' Chronicle The FTSE in 2026, the Santa rally & crypto: The Companies and Markets Show
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Dec 19, 2025 Alex Newman, a financial journalist, shares insights on the FTSE 100's exceptional performance in 2025, attributing gains to sectors like banking and healthcare. Mark Robinson, a market analyst, delves into the intriguing concept of the Santa rally, discussing its origins and what to expect this year. Holly McKechnie, a legal expert, highlights landmark legislation that categorizes crypto as property, outlining its implications for ownership rights and inheritance issues. Together, they unravel the complexities of today's market landscape.
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Few Sectors Drove The FTSE Rally
- The FTSE 100's 2025 rally was driven by a handful of sectors, notably banks, healthcare and industrials.
- Sector size and standout company gains explained much of the index outperformance versus peers.
Returns Look Richer But Not Extreme
- A ~20% one-year rise is large but not unprecedented; the 40-year mean is about 10%.
- Current forward P/E of the All-Share (~13x) sits above long-run averages but reflects recovery from a very low base three years ago.
Buybacks Have Magnified Returns
- Buybacks have materially amplified returns for large caps, especially banks and Shell.
- Dividend contributions faded this year as capital growth dominated total returns.