The UK’s flagship stock index has surpassed the significant milestone of 10,000 points for the first time. This achievement was realized within the first half-hour of trading on the initial day of the new year.
The Financial Times Stock Exchange (FTSE) 100 is comprised of the hundred most valuable companies listed on the London Stock Exchange. Among these notable constituents are prominent lenders such as Barclays, Natwest, HSBC, and Lloyds, as well as popular supermarket chains like Tesco, Marks & Spencer, and Sainsbury’s. The index also prominently features mining and international oil and gas companies.
Dan Coatsworth, the head of markets at investment platform AJ Bell, expressed that this milestone marks a historic moment, making 2026 one of the most significant years for the blue-chip index since its inception in 1984.
The FTSE 100 saw a boost in its performance on Friday morning, attributed to share price increases from companies such as Rolls-Royce Holdings in the aerospace sector and Fresnillo in the mining industry, the latter of which experienced the largest rise last year.
This accomplishment follows a record-breaking year for the FTSE 100, with the index closing at an all-time high 41 times. In 2025, it outperformed its competitors, including the S&P 500, which is the US index comprising the most valuable companies globally.
Before breaking the 10,000 mark, the index had previously reached the symbolic level of 9,000 in July. Factors such as expectations of cheaper borrowing due to interest rate cuts and a weaker pound at times contributed to the competitiveness of FTSE 100 companies, making purchasing sterling-priced shares more attractive.
Policy announcements by Chancellor Rachel Reeves have been acknowledged as a catalyst for the rise in the new year. Mr. Coatsworth noted that surpassing the 10,000 level is a significant achievement, reflecting the benefits of investing in UK shares over keeping cash in the bank.
Furthermore, changes to cash ISAs announced in the budget limit savers to deposit up to £12,000 tax-free annually, with the intention of encouraging individuals to invest in the stock market. Additionally, new measures empower banks and building societies to provide financial advice to customers.
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