The stock market saw a significant milestone today as the FTSE 100 index surpassed the 10,000-point mark for the first time. Within the initial trading hour, the blue-chip index climbed to 10,046 points before slightly retracting following the New Year break.
Comprising the top 100 UK companies listed on the London Stock Exchange, the FTSE 100’s performance impacts both investors and individuals with pension investments. Notably, the index had its strongest showing since 2009, ending the year with a 21.5% increase, driven by notable gains in sectors like precious metal mining, defense, and financial services.
Investor interest in the stock market has been fueled by global political uncertainties and sluggish UK economic growth. Closing 2025 at 9,931.38, the FTSE 100 consistently reached record highs throughout the year, outperforming European and US counterparts like France’s Cac 40 and New York’s S&P 500.
Breaking the 10,000-point barrier today marked a historic moment for the blue-chip index since its inception in 1984, according to Dan Coatsworth, AJ Bell’s Head of Markets. Chancellor Rachel Reeves highlighted the significance of this achievement, emphasizing the benefits of investing in UK shares over keeping cash idle in banks.
Chancellor Reeves viewed the FTSE 100 milestone as a vote of confidence in the UK economy and a positive start to 2026. Notably, changes to the cash ISA annual limit were announced to encourage more people to invest in the stock market, with modifications set to take effect from April 2027. Under the new rules, individuals under 65 will only be able to invest up to £12,000 in a cash ISA annually, down from the current £20,000 limit. Over-65s can still invest up to £20,000 in cash ISAs, maintaining the overall £20,000 ISA limit allowing for a split between cash and stocks and shares ISAs.
