The FTSE 100 index soared above the 10,000-point mark today, hitting a significant milestone. During the initial hour of trading post the new year break, the blue-chip index peaked at 10,046 points before experiencing a slight pullback.
The FTSE 100 represents the top 100 UK companies listed on the London Stock Exchange, impacting not just investors but also individuals with pension investments. This surge follows the index’s robust performance in 2009, ending the year with a 21.5% increase, notably driven by higher share prices in sectors such as precious metal mining, defense, and financial services.
Investors have been drawn to the stock market amid global political uncertainties and sluggish economic growth in the UK. Closing 2025 at 9,931.38, the FTSE 100 surpassed record highs multiple times throughout the year, outperforming European and US counterparts like France’s Cac 40 and New York’s S&P 500.
Before breaching the 10,000-point milestone today, the index had crossed the symbolic 9,000 mark in July. Dan Coatsworth, AJ Bell’s head of markets, hailed the achievement as a historic moment, making 2026 one of the most significant years for the index since its inception in 1984.
Rachel Reeves, the Chancellor, expressed satisfaction with the FTSE 100 surpassing 10,000 points, citing it as a vote of confidence in the UK economy. Reeves recently announced adjustments to the cash ISA annual limit to encourage more stock market investments, reducing the limit for under-65s to £12,000 starting April 2027 from the current £20,000.
Meanwhile, over-65s will retain the £20,000 cash ISA limit, maintaining the overall £20,000 ISA cap, allowing a split of £12,000 in a cash ISA and £8,000 in a stocks and shares ISA.