FTSE 100 closes whisker away from 10,000 after intraday high
The FTSE 100 was heading to a close a whisker away from the 10,000 mark on Friday after sealing an intraday high in the first day of trading in 2026.
London’s blue-chip index climbed 0.3 per cent to finish the session near 9,962p.
The index was boosted by an early morning rally as markets opened, which sent the index to its next milestone at 10,003.68 marking an intraday high.
“It’s time to break out the champagne as UK stock markets have delivered a New Year’s treat,” Dan Coatsworth, head of markets at AJ Bell, said.
The FTSE 100 was boosted by City darling Rolls-Royce, which was among the top gainers, rising some 3.5 per cent to 1,191p.
Gold miner Fresnillo, which was the best blue-chip performer of 2025 with a rally of over 400 per cent, added 2.9 per cent
Defence stocks Babcock and BAE Systems were also driving the index higher by 2.7 per cent and 2.6 per cent respectively.
Of the fallers, British American Tobacco slumped over two per cent to 4,127p, before clawing back some gains.
Smith and Nephew and British Land edged down on soft house price data published on Friday morning, with losses of under one per cent.
Rebecca Maclean, investment director at Aberdeen Investments, said: “An impressive return for a region many investors continue to overlook. Notably, last year saw global equity leadership broaden, with almost every major market outpacing the US, as investors diversified their exposure.
Looking ahead, the UK market is expected to deliver solid earnings growth in 2026 and remains one of the cheapest equity markets globally, creating fertile ground for future returns. For those looking beneath the fizz, UK mid‑caps lagged last year’s rally and could present a compelling place for investors to focus next.”
Chancellor Rachel Reeves said on X the rally was a “vote of confidence in Britain’s economy and a strong start to 2026.”
FTSE 100 sealed 41 record closes in 2025
The FTSE 100 closed 2025 at 9,923.06, with a rise of over 20 per cent. The index closed on record highs on 41 different trading sessions throughout the year.
“So much for the UK being the home for old economy companies – the FTSE 100 has had precisely the ingredients desired by investors in a year full of political, trade and market uncertainty,” said Coatsworth.
But despite a glowing year for UK equities, not all shares enjoyed the rally.
Coatsworth said it is “somewhat ironic” that the country’s leading stock exchange operator was one of the FTSE 100’s worst performers in a “fantastic year” for UK shares.
Despite a minor spurt in December, the London Stock Exchange Group (LSEG) has tumbled 22 per cent over the last 12 months.
Advertising giant WPP has suffered a significant downturn after being forced to slash its outlook amid rising competition.
The firm’s stock fell by nearly 60 per cent in 2025 and was demoted from the FTSE 100 in December’s reshuffle.