UK stock market rebounds after pandemic shocks, driven by vaccines, government stimulus, and economic optimism.

The FTSE 100 has recorded its strongest performance since 2016, with a remarkable 14.3% increase in 2021, recovering from the severe impact of the Covid-19 pandemic in 2020. The index closed the year at 7,384 points, up from 6,460 points at the start of 2021, reflecting a broad market recovery.

This growth was primarily fueled by economic optimism, as the rollout of Covid-19 vaccines allowed global economies to reopen, while government stimulus packages provided further momentum. Despite concerns over inflation, supply chain disruptions, and the emergence of the Omicron variant, markets largely remained resilient. The FTSE 250, more focused on domestic stocks, also saw a strong 14.6% gain, reaching a peak of 24,353 points in September.

Among the top performers, Ashtead Group, an industrial equipment rental company, led the FTSE 100 with a 73% gain, benefiting from the global economic rebound and the reopening of major construction projects.