The stock market milestone was reached today as the FTSE 100 index surged above 10,000 points for the first time ever. Within the initial trading hour, the blue-chip index peaked at 10,046 points before experiencing a slight pullback following the holiday break.
Consisting of the top 100 UK companies listed on the London Stock Exchange, the FTSE 100’s performance holds significance not only for investors but also for individuals with pension investments. The index’s notable performance in 2025 saw a 21.5% increase, driven by gains in sectors such as precious metal mining, defense, and financial services.
Investor interest in the stock market has been heightened amidst global political uncertainty and sluggish UK economic growth. Closing the year at 9,931.38, the FTSE 100 surpassed previous record highs multiple times, outperforming European and US counterparts like France’s Cac 40 and New York’s S&P 500.
Acknowledging the historic moment, Dan Coatsworth, the head of markets at AJ Bell, highlighted the significance of breaching the 10,000 level in 2026. Chancellor Rachel Reeves praised the milestone, emphasizing the confidence it instills in the UK economy and the positive start to the year.
As part of efforts to promote stock market participation, changes to the cash ISA annual limit were announced, reducing the limit to £12,000 for individuals under 65 starting from April 2027. Over-65s will maintain a £20,000 allowance for cash ISAs, allowing for a total £20,000 ISA limit that can include both cash and stocks and shares ISAs.