Breakouts: FTSE 100 Stocks Cracking 52-Week Highs

The new year has been positive for UK stocks, with the premier index trading above 10K since last week as global investors seek value amid uncertainty.

Breakout FTSE 100 Names

• Lloyds Banking (LLOY) +2.8% YTD
• Glencore (GLEN) +19.1% YTD
• Rolls-Royce (RR) +10.9% YTD
• Rio Tinto (RIO) +6.0% YTD
• AstraZeneca (AZN) +4.0% YTD

Miners Help FTSE 100 to Record High

A glance at stocks breaking over 52-week highs on Wednesday suggests a pattern: strong performance among miners pushed the FTSE to a new all-time high. Gold prices rose to a new record high, with the precious metals complex broadly higher amid increased global uncertainty and a recovery from earlier-week profit-taking. Additionally, China's trade figures reported on Tuesday showed a record surplus and rising imports, suggesting that the world's largest commodity consumer continues to have solid demand. Also, on Wednesday, there were press reports that Beijing was looking at a new round of stimulus measures to support employment. Amid demand for safe havens, global equity performance diverged, with European and British stocks outperforming their American counterparts as traders sought value positions that also benefited defensive plays such as pharmaceuticals and banking. Below are the latest developments driving some of the FTSE 100 stocks that have hit 52-week highs.

Lloyds Just Keep Rising

The recent gains in the large UK bank may be due to the start of earnings season, when many major global banks update investors on their financials. However, it seems that Lloyd's break over its 52-week high is just a continuation of a trend that has left its share price up over 78% in the last year. The higher trend is evident across other major European banks, but Lloyds stands out as one of the top-performing UK banks. Analysts point to it being close to resolving the auto insurance issue that left its shares underperforming in prior years, implying the bank could have more upside as it catches up with rivals. The bank will disclose its annual earnings report on 29 January.

AstraZeneca's AI Push

The UK pharma giant is a logical play in risk-averse markets, but AstraZeneca has recently attracted attention due to M&A. On Tuesday, it announced the acquisition of Boston-based Modella AI to accelerate oncology drug development but didn't disclose the investment price. The news came on the heels of the announcement of a strategic collaboration with BostonGene to advance oncology development, a growing interest for the company. The drugmaker's shares are holding gains despite the announcement earlier this month that it would be delisted from the US Nasdaq and replaced by Walmart on 29 January. Traders are now looking forward to the company's earnings report, scheduled for 20 February.

Glencore and Rio Tinto Merger

While miners in general have been higher, Glencore and Rio Tinto have attracted additional investor attention amid reports that they are working on a merger.  A week ago, the companies confirmed they were in merger talks, but so far, there haven't been many details about what the combination would look like. As a result, investor speculation has run wild. Especially considering that BHP reportedly expressed interest in Glencore, and there is a chance of a bidding war. A combination would create the largest mining company, with a total market value of over $200 billion. It's worth noting that the two companies tried to combine a little over a year ago, but talks failed at that time.

FTSE 100: Lower VWAP Starts to Flatten Out

Following several weeks of upside, the UK’s premier index may be nearing a top near 10,300, which lies alongside the measured-move projection target of the 8,900–7,500 leg that formed in early 2025. The lower VWAP bank has also started to flatten out while the RSI remains in overbought territory, both suggesting a potential pullback. As the FTSE100 trades past the 10k handle, this is the line in the sand for short-term bullish price action, with the prior peak at 9,800 just below it. On the other hand, if the index claims the measured-move target, the odds of extending to the next psychological hurdle at 10,500 will improve.

Source: SpreadEx | UK 100, Weekly Chart