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 hour of trading, the blue-chip index climbed to 10,046 points before experiencing a slight pullback post the new year break.
The FTSE 100, comprising the top 100 UK companies listed on the London Stock Exchange, witnessed a remarkable performance in 2025, ending the year with a notable 21.5% increase. The surge in share prices was particularly evident in sectors such as precious metal mining, defense, and financial services.
Investors have shown heightened interest in the stock market due to global political uncertainties and sluggish economic growth in the UK. The FTSE 100 closed 2025 at 9,931.38, surpassing previous record highs throughout the year and outperforming various European and US counterparts.
Dan Coatsworth, the head of markets at AJ Bell, hailed the achievement as a historic moment for the blue-chip index, emphasizing the significance of breaking the 10,000 level. Chancellor Rachel Reeves expressed confidence in the UK economy following the FTSE 100’s milestone, attributing it to the government’s efforts to encourage investment in stocks.
In a recent Budget announcement, Chancellor Rachel Reeves disclosed changes to the cash ISA annual limit, aimed at promoting stock market investments. Starting April 2027, individuals under 65 will be restricted to a £12,000 annual cash ISA limit, down from the current £20,000 allowance. Over-65s will retain the £20,000 cash ISA limit, allowing a split between cash and stocks and shares ISAs within the overall £20,000 ISA limit.
