The FTSE 100 ended the year at 6,566.09 points, 0.3 per cent higher than yesterday's close, as trading ended early on New Year's Eve.
However, the index was 2.7 per cent down on the beginning of the year, as equities were rocked by headwinds from global markets.
Alastair McCraig, a market analyst at IG, pointed out that this year was the first in more than a decade when the FTSE 100 closed lower than it started.
Considering the FTSE flirted with the 6,900 level on several occasions over the year, predictions of a year end 7,000 level certainly did not look too outrageous.
However, weaker growth in China, falling oil prices and the tumult in Russia all took their toll on the market.
However, this year has also been one of the most popular for IPOs, with 138 IPOs raising a total of £16.9bn. Some 58 companies listed on the main market, including Zoopla, TSB, Poundland and Jimmy Choo, raising £14.1bn, while 80 IPOs on Aim raised £2.8bn.
The largest IPO by money raised was AA, which made £1.39bn, while B&M Stores became the largest IPO by market cap, when its listing valued it at £2.5bn.