Footsie surges above 10,000 and begins the brand new yr with a bang

The FTSE 100 surged past the 10,000 mark for the first time yesterday in a ‘champagne’ start to New Year trading that provided a major boost for savers and investors.

London’s leading share index soared as high as 10,046 points, and though the fizz came out of the rally, it still ended 0.2 per cent, or 19.76 points, up at 9,951.14 – a closing record.

The increase built on a bumper performance in 2025 when the FTSE rose by nearly 22 per cent, its strongest showing since 2009.

It represents a major boost to the City’s hopes of re-establishing its credentials as a major listings venue for global companies.

The London market in recent years has been beset by members quitting for the bright lights of Wall Street or being taken over by foreign predators on the hunt for a bargain.

Higher valuations will lead to hopes that more executives will choose to list in Britain, or that those already here will be able to resist the lure of private-equity dollars.

Rally: London’s leading share index soared as high as 10,046 points

The FTSE has largely missed out on the artificial intelligence (AI) driven mania that has taken US stock markets to stratospheric levels.

But with fears growing of an AI ‘bubble’, as well as an undercurrent of anxiety about Donald Trump’s erratic policies, the London market is being seen by some experts as an increasingly attractive alternative.

Bola Onifade, portfolio manager at JP Morgan Personal Investing, said: ‘The UK’s flagship stock index has started the new year with a bang.

‘This will be a huge boost to sentiment towards UK stocks, and for many in the City of London, who have lamented the FTSE 100’s performance in recent years – when the index has suffered amid delistings and lower exposure to the AI and technology boom.’

Dan Coatsworth, head of markets at broker AJ Bell, said: ‘It’s time to break out the champagne as UK stock markets have delivered a New Year’s treat.

‘This is a historic moment and already makes 2026 one of the most significant years for the blue-chip index since its launch in 1984. The FTSE 100’s achievements just go to show what’s possible when buying UK shares.

‘It also proves to cynics that the UK market is not stuck in the mud, and that the US stock market is not the only place to make money,’ he added.

‘Lots of people have criticised the UK for being an old economy market, full of boring companies in the banking and natural resources sector. Yes, it lacks the excitement of go-go-growth stocks omnipresent in the US, but boring can also be beautiful when it comes to investing.’

Yesterday’s FTSE risers included aerospace and defence stocks such as Rolls-Royce, up 4.1 per cent, Babcock, rising 2.4 per cent, and BAE Systems, climbing 2.3 per cent.

The sector was also a strong performer across the past year.