The FTSE 100 index hit a significant milestone today by surpassing 10,000 points for the first time. During the initial trading hours, it peaked at 10,046 points before experiencing a slight pullback after the new year holiday.
Comprising the top 100 UK companies listed on the London Stock Exchange, the FTSE 100’s performance holds importance not just for investors but also for individuals with pension investments. This achievement follows a remarkable year in 2025 when the index recorded a 21.5% increase, particularly driven by sectors like precious metal mining, defense, and financial services.
Investor interest in the stock market has been mounting due to global political uncertainties and sluggish economic growth in the UK. Closing the year at 9,931.38, the FTSE 100 consistently surpassed previous record highs throughout the year, outperforming major European and US indices such as France’s Cac 40 and New York’s S&P 500.
Before reaching the 10,000-point mark today, the index had breached the symbolic level of 9,000 in July. Dan Coatsworth, head of markets at AJ Bell, commented that breaking the 10,000 level marks a historic moment, making 2026 a significant year for the index. Chancellor Rachel Reeves expressed optimism, stating that this achievement reflects confidence in Britain’s economy and sets a strong start for the year.
In a move to encourage more people to invest in the stock market, the Chancellor announced changes to the cash ISA annual limit in her recent Budget. Starting from April 2027, individuals under 65 will only be able to contribute £12,000 annually to a cash ISA, 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 a split between cash and stocks and shares ISAs.