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FTSE 100 shares have (largely) come out swinging in 2025. Up 17%, the UK’s premier share index has benefitted from resilient earnings, falling inflation, and rising demand for affordable shares.
With all of those catalysts nonetheless in play, 2026 may very well be one other yr of titanic share worth good points. Naturally some blue-chip shares are prone to carry out significantly better than others.
Barratt Redrow (LSE:BTRW) and Antofagasta (LSE:ANTO) are two FTSE shares I feel may take off subsequent yr. Wanna know why?
Residence run?
Buyers nonetheless doubt the housing market’s underlying energy, however I feel they’ll come round. And once they do, I feel housebuilder shares may detonate.
Barratt Redrow is one I feel may rebound owing to its rock-bottom valuation. The UK’s largest housebuilder has tumbled 15% in worth since 1 January, leaving it buying and selling on a price-to-book (P/B) ratio of 0.7. Any studying under one exhibits a inventory buying and selling under the worth of its property.
Supply: TradingView
Housebuilders are among the many most economically delicate shares on the market. So on one hand, it’s comprehensible that Barratt’s dropped sharply since mid-summer — financial forecasts for the UK haven’t precisely been brimming with confidence.
But Barratt’s valuation nonetheless appears to be like far too low to me. And as I mentioned on the high, the properties market stays fairly sturdy regardless of weak financial circumstances.
Can the market sustain the momentum although? I feel it could possibly, as lending circumstances steadily enhance. Common charges on two- and five-year mortgages are actually at their lowest charge since Liz Truss’ disastrous mini-Price range in 2022, in accordance with Moneyfacts.
This displays an more and more bloody charge warfare amongst Britain’s lenders. With the Financial institution of England tipped to maintain decreasing charges subsequent yr, too, I feel issues will preserve getting higher for homebuyers.
Barratt’s rock-bottom valuation may entice severe dip-buying curiosity on this state of affairs, driving its share worth greater.
Getting began?
Antofagasta’s share worth has headed in a really completely different path in 2025. It’s up a mammoth 84% since 1 January. I feel it may simply be getting began.
I’m not anticipating it to draw consideration from discount hunters like Barratt’s shares. It trades on an excessive price-to-earnings (P/E) ratio of 31.5 occasions. However the copper miner may nonetheless stride greater as costs of the economic steel balloon.
Copper is up 32% within the yr up to now as shrinking provides have sparked panic shopping for. With the US stockpiling steel, mine disruptions ongoing, and demand from knowledge centres and the renewable vitality sectors booming, 2026 may very well be one other sturdy yr for the crimson steel.
Citi analysts assume costs may hit $14,000 a tonne subsequent yr. They had been final round $11,600.
I like the thought of shopping for copper shares to capitalise on this chance. As Antofagasta’s share worth motion exhibits, they’ll rise extra sharply in worth throughout bull markets than the steel itself. This displays the ‘leverage’ impact, the place revenues balloon whereas prices stay unchanged. It’s a mix that may supercharge income.
There are dangers although. Recent commerce tensions and different financial shocks may injury copper demand and due to this fact costs. Antofagasta can be vulnerable to profits-sapping manufacturing stops, a continuing danger for mining firms.
But on stability, I feel it’s a high FTSE 100 inventory — like Barratt — to focus on massive returns subsequent yr.
