The FTSE 100 index surpassed the 10,000-point mark today, marking a significant milestone. Within the first trading hour post the new year break, the blue-chip index climbed to 10,046 points before experiencing a slight pullback.

Comprising the largest 100 UK companies listed on the London Stock Exchange, the FTSE 100’s performance holds importance not only for investors but also for individuals with pension investments. Notably, the index achieved its best performance since 2009, closing the year 21.5% higher, with notable gains in share prices of precious metal mining, defense, and financial services companies.

Investor interest in the stock market has been fueled by global political uncertainties and sluggish economic growth in the UK. The FTSE 100 closed 2025 at 9,931.38, consistently surpassing record highs throughout the year and outperforming several European and US counterparts.

Prior to today’s milestone, the index breached the symbolic 9,000 level in July. Dan Coatsworth, markets head at AJ Bell, described the breakthrough as a historic moment, making 2026 a significant year for the index since its inception in 1984. Chancellor Rachel Reeves emphasized the vote of confidence in Britain’s economy as the FTSE 100 exceeded 10,000 points for the first time, attributing it to the merits of investing over cash parking.

In a move to encourage stock market investments, Chancellor Rachel Reeves announced changes to the cash ISA annual limit in her Budget last November. Effective from April 2027, individuals under 65 will be restricted to a £12,000 annual cash ISA limit, down from the current £20,000. Over-65s can still contribute up to £20,000 to cash ISAs while maintaining the overall £20,000 ISA limit, allowing a split between cash and stocks and shares ISAs.