Four FTSE 100 Breaking Above 52-Week Highs

The UK's premier stock index is up over 18% since the start of the year and is trading just shy of its own all-time high in mid-November. There is logically a wealth of companies that have recorded strong growth, and some interesting picks are breaking above their 52-week highs ahead of a crucial BOE rate decision next week.

FTSE Stocks Hitting 52-Week Highs

• Barclays (BARC) on Thursday
• Standard Chartered (STAN) on Thursday
• Rio Tinto (RIO) on Thursday
• Reckitt Benckiser (RKT) on Thursday

Miners, Banks Leading FTSE 100 Higher

A glance at the list of top companies breaking out of 52-week highs shows a clear pattern related to monetary policy and ongoing geopolitical themes. Banks top the list ahead of the BOE meeting next week, with all economists in a recent poll expecting a 25 bps rate cut. Economists also believe that the Bank of England will continue to ease in 2026, with lower rates potentially benefiting banks as more consumers are tempted to take out loans.

Miners have been the star this year, as lower interest rates support commodity prices, with gold and silver rocketing higher. AngloAmerican's agreement to merge with Teck Resources on Wednesday supports consolidation in the sector and benefits the industry. A dovish BOE would likely imply a weaker pound, which could benefit businesses with overseas operations. Investors who are purchasing shares in the consumer staples company Reckitt Benckiser may be considering this factor.

Here's a rundown of the latest news that supports performance in these firms.

Barclays Still a Dividend Play

While all UK banks benefited from the Autumn Budget not having the feared windfall tax, Barclays stood out as one of the best dividend stocks in the financial sector after getting a buy recommendation from analysts at Bank of America. At the JPMorgan UK Leaders Conference back in mid-November, the bank committed to at least £10 billion in distributions across 2024-26, with a larger emphasis on dividends. The CEO touted cost-saving programmes and expected a lower cost-to-income ratio going forward, aided by the integration of Tesco and IB. 

Standard Chartered Expected to Boost Earnings

Goldman Sachs expressed confidence in the UK bank, which has significant exposure to China, by raising its rating to "Buy" on Thursday. The analysts cited the potential for a guidance boost when the company reports its next earnings, thanks to rising return on tangible equity (ROTE), which Goldman believes will exceed targets. The stock price is up almost 74% since the start of the year but still has a relatively low P/E ratio of 12x when compared to its peers.

Rio Tinto Riding Commodity Wave

The weaker dollar this year has supported commodity prices, with precious metals getting most of the headlines. However, iron ore has also been improving since the summer, and major producer Rio Tinto's share price has been tracking higher. Last week, the company hosted its annual capital markets day, saying that production had risen 7% this year and affirming its production volume target for 2030 to grow at a 3% CAGR. The company also said it planned to release $5-10 billion in cash via asset sales.

Reckitt Benckiser Stands to Gain From Weaker Pound

After stumbling in April amid the start of the tariff wars, the food staple company has seen steady share growth through the rest of the year. The company's steady performance as a defensive stock seems to be garnering investor interest, as a weaker pound would increase its overseas profits. Recently, both Berenberg and Deutsche Bank raised price targets for the company, citing growing confidence that Reckitt Benckiser can deliver steady performance and manage costs. Last week, the firm provided a presentation for investors, targeting an annual 4-5% like-for-like sales growth.