FTSE 100 Reaches Historic 10,000 Points Milestone, Caps Best Year Since 2009
London's FTSE 100 index reached the historic 10,000 points milestone for the first time on Friday, marking the best start to 2026 following a remarkable 22% gain in 2025. The performance, representing the strongest year since 2009, was driven by miners benefiting from precious metal price surges, defence companies capitalizing on increased European spending, and banks gaining from elevated interest rates. Despite limited AI sector exposure, the index's international focus has attracted investors seeking value amid bubble concerns.
*this image is generated using AI for illustrative purposes only.
London's FTSE 100 index achieved a historic milestone on Friday, crossing the symbolic 10,000 points mark for the first time. This achievement marked a positive start to 2026 for the British benchmark, which has experienced significant momentum following its strongest annual performance in over a decade.
Record-Breaking Performance in 2025
The FTSE 100's milestone came on the first trading day of 2026, capping an exceptional year that saw the index gain nearly 22% in 2025. This performance represented the benchmark's best year since 2009, demonstrating remarkable resilience in the British market.
| Performance Comparison: | 2025 Results |
|---|---|
| FTSE 100 Gain: | Nearly 22% |
| Best Year Since: | 2009 |
| Relative Performance: | Outperformed STOXX 600 and S&P 500 |
| FTSE 250 Performance: | Approximately 9% |
Key Sector Drivers
The FTSE 100's strong performance was driven by several key sectors, despite limited exposure to artificial intelligence companies that fueled global market rallies. The biggest gainers included diverse industry segments that benefited from specific market conditions.
Mining companies led the charge, with Fresnillo among the top performers as precious metal prices surged throughout the year. Defence firms also contributed significantly to the index's gains, with companies like Babcock and Rolls-Royce capitalizing on increased European defence spending amid geopolitical tensions.
The banking sector provided additional support, with Lloyds among the beneficiaries of elevated interest rates combined with decent economic growth. This combination created favorable conditions for financial institutions throughout 2025.
Market Positioning and Investor Sentiment
According to Danni Hewson, head of financial analysis at AJ Bell, the milestone represents more than just numerical achievement. "It's nice to be going into 2026 with a good news story," Hewson noted, emphasizing the psychological impact of positive momentum after years of challenges.
British markets have faced several headwinds in recent years, including a shortage of initial public offerings, company delistings, and primary listing relocations to other markets. Political instability, bond market volatility, and post-Brexit uncertainty have further complicated the investment landscape.
Competitive Advantages
Despite lacking significant exposure to technology and AI sectors, the FTSE 100's composition may offer distinct advantages. Hewson highlighted that investors are increasingly examining UK-listed stocks as concerns about potential AI market bubbles grow.
"People are concerned about a potential AI bubble, and are looking for stocks that hold value over time, and work in a global backdrop and are not fighting against geopolitical issues that could impact businesses," she explained.
The index's heavy weighting toward internationally focused companies has also contributed to its outperformance compared to the domestically focused FTSE 250, which rose approximately 9% in 2025. However, the blue-chip index still lagged behind other international markets, including Japan, Hong Kong, Korea, Spain, and Italy during the same period.
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