The FTSE 100 has long been seen as a value trap by international investors — too heavy in legacy industries, too light on technology. But 2025 is telling a more nuanced story.
n
Energy: The Unexpected Winner
n
BP and Shell continue to generate enormous cash flows despite the global transition away from fossil fuels. Both companies are using that cash to fund renewables investment while returning capital to shareholders.
n
Defence: Structural Growth
n
BAE Systems and Rolls-Royce have been standout performers as European defence spending rises in response to geopolitical tensions.
n
Financial Services
n
HSBC, Barclays and Standard Chartered are benefiting from a higher-for-longer interest rate environment.
n
Our View
n
The FTSE 100 offers genuine value at current levels — but investors must remain selective and understand the specific risks in each sector.
n
