LONDON – The UK’s FTSE 100 edged closer to a record high in subdued year-end trading, as investors navigated a holiday-shortened session marked by low volumes, selective corporate news, and muted risk appetite across European markets.
In quiet post-Christmas conditions, the blue-chip index slipped marginally by 4.15 points to close at 9,866.53, hovering just below historic levels. The FTSE 250, more exposed to domestic companies, outperformed, rising 0.4% to 22,407.51, supported by merger activity and stock-specific moves.
Deal Activity Lifts Mid-Cap Stocks
The standout performer of the session was International Personal Finance, whose shares surged nearly 6% after agreeing to an all-cash takeover by BasePoint Capital. The revised offer of 235 pence per share represented a substantial premium to earlier valuations and was welcomed by the board as an opportunity for shareholders to crystallise value in cash.
The transaction values the business at approximately £543 million and is expected to proceed subject to shareholder approval, adding to a steady flow of private equity interest in UK-listed mid-cap firms amid relatively attractive valuations.
Leadership Shake-Up Hits Media Shares
Elsewhere, Everyman Media came under heavy pressure following a fresh profit warning and a sudden leadership change. The cinema operator announced the immediate departure of chief executive Alex Scrimgeour, appointing Farah Golant as interim CEO. Shares in the company have fallen sharply over the past year, reflecting operational challenges and softer consumer demand.
The episode highlighted ongoing fragility within discretionary sectors, even as broader equity indices remain resilient.
A Strong Year for UK Equities
Despite the muted close, UK stocks are on track to record their strongest annual performance in over a decade. The FTSE All-Share has been buoyed by strong gains in precious metals miners, select financials, and global-facing companies benefiting from a weaker pound and stabilising inflation expectations.
Gold producers such as Fresnillo have ranked among the year’s top performers, supported by elevated bullion prices and renewed investor interest in defensive assets amid geopolitical uncertainty.
Outlook: Cautious Optimism Into 2026
With most global markets operating on reduced schedules, investors showed little appetite to make aggressive moves before year-end. Attention is now shifting to early 2026, when monetary policy expectations, corporate earnings updates, and geopolitical developments are likely to drive renewed volatility.
For now, the FTSE’s steady climb toward record territory reflects a market balancing valuation discipline, selective risk-taking, and cautious optimism about the UK’s economic trajectory.
FAQs
Why is the FTSE 100 near a record high?
The index has been supported by strong performances in global-facing companies, miners, and defensive stocks, alongside easing inflation pressures.
Why was trading volume low?
The session took place during a holiday-shortened week, resulting in thin liquidity and reduced institutional participation.
What drove the FTSE 250 higher?
Mid-cap stocks benefited from takeover news, particularly the acquisition of International Personal Finance.
Why did Everyman Media shares fall sharply?
A profit warning combined with the sudden resignation of the chief executive weighed heavily on investor confidence.
What are investors watching heading into 2026?
Key drivers include interest rate expectations, corporate earnings momentum, and global geopolitical risks.