Which FTSE 100 stocks experienced the greatest rise in value over the past 6 months?
Mining Giant Fresnillo experienced a remarkable 77% surge in its shares within the past six months, propelling it to the top position in the FTSE 100's performance chart. This unprecedented growth can be attributed to a confluence of factors, primarily the surge in gold prices and the associated instability in global stock markets following President Trump's tariff announcements.
The record-breaking gold prices breached the $3,500 per ounce mark on 22nd April, just a few weeks after Trump's announcement of a 10% baseline tax on all US goods imports as well as reciprocal tariffs of 25% on multiple countries. Additionally, its value has been supported by inflows into gold-backed exchange-traded funds and central banks' high demand, particularly amid the escalating geopolitical tension fueled by Russia's invasion of Ukraine.
The gold market's performance has also positively impacted silver prices, though not to the same extent. Silver's value increased by approximately 21% last year, reaching $28.90 per ounce due to strong industrial demand for its use in green technologies such as solar panels and electric vehicles.
Buoyed by this factors, and moderate increase in production output, Fresnillo's turnover soared by 29.3% in 2024 to $3.5billion, while its pre-tax profits skyrocketed over sixfold to $743.9million.
In addition to Fresnillo, other companies that enjoyed significant growth over the past six months include Airtel Africa and Rolls-Royce Holdings, with shares increases of around 70% and 57%, respectively.
Airtel Africa, a little-known telecoms provider, reported flat revenue at nearly $5billion for the year ending March, but still managed to attract investors thanks to the improving market conditions. Rolls-Royce, in turn, has seen a remarkable turnaround under CEO Tufan Erginbilgic's leadership, slashing costs through job cuts, improved supply chain management, and tapping into the resurgence of foreign travel and defense spending.
Consequently, Rolls-Royce's market value jumped approximately ninefold since the start of 2023, from £7.9billion to £71.5billion, reaching its 2027 profit targets two years ahead of schedule. Meanwhile, companies such as BAE Systems, Lloyds Banking Group, NatWest, and Coca-Cola Hellenic Bottling Company also posted strong performances during this period.
The FTSE 100 closed 0.8% higher today, reaching 8,785–a level last seen at the commencement of March. Noteworthily, the index has gained 14.3% since 9th April, when Trump's tariff announcement triggered a global market downturn.
Analyst upgrades and a positive outlook on precious metal prices continue to favor Fresnillo, windening the odds for further share price growth, though cautious optimism may be advised as we monitor the broader economic and political landscape.
In the dynamic realm of finance, Fresnillo's banking sector peers, like Airtel Africa and Rolls-Royce Holdings, have also experienced substantial growth, with shares increases of around 70% and 57% respectively, mirroring the impressive surge in Fresnillo's shares. Moreover, anticipated analyst upgrades, coupled with a positive outlook on precious metal prices, may influence further investment in the finance business, including Fresnillo.
