Best day in six months drives Footsie to new high as sparkling start to the new year continues
The FTSE 100 roared to a record high yesterday as it enjoyed its best session in six months, extending its sparkling start to the new year.
London’s leading stock index rose by 1.2 per cent, or 118.2 points, to 10,122.73, the biggest rise since July.
Danni Hewson, head of financial analysis at AJ Bell, said: ‘London’s blue-chip index is surfing a wave of investor optimism.’
Yet some investors are missing out. UK-focused equity funds saw an exodus of £9.55billion in 2025 – the tenth year of outflows in a row, according to funds network Calastone.
Ryan Hughes, AJ Bell Investments managing director, said it appeared that while domestic investors were pulling out of UK funds, foreign money was rushing in the other direction.
‘Overseas buyers are seeing attractive valuations in UK equities, which in turn has boosted the FTSE 100 over the past year,’ he said.
Rally: The FTSE 100 rose by 1.2%, or 118.2 points to 10,122.7, the biggest rise since July. It has now risen for three sessions in a row since New Year
The FTSE 100 has now risen for three sessions in a row since New Year.
The promising start to 2026 has taken the index above the 10,000 mark for the first time and builds on an increase of nearly 22 per cent over the course of 2025 – the biggest annual gain for 16 years.
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London’s top flight had struggled in previous years as it missed out on the artificial intelligence (AI) driven US tech rally which has lifted New York shares to stratospheric heights.
But with concerns growing about an AI bubble and an undercurrent of anxiety about Donald Trump’s erratic policy- making, investors are increasingly seeking value in the FTSE.
Yesterday’s rally was led by precious metals miner Fresnillo, buoyed by rising gold and silver prices.
It had surged by 450 per cent in 2025 and added 5.2 per cent, or 182p, to 3678p yesterday. It is already up 10.3 per cent for the year to date after just three days of trading.
High Street stalwart Next climbed 5 per cent, or 675p, to 14,265p on a well-received trading update, while at the luxury end of the market, fashion brand Burberry gained 4.6 per cent, or 60p, to 1360p.
Pharmaceuticals giant AstraZeneca, the FTSE’s biggest member, surged 4.9 per cent, or 654p, to 14,038p after a positive drugs trial update while rival GSK added 4.3 per cent, or 79p, to 1899.5p.
‘Classy and classic sectors like finance, pharma, big oil and High Street retail stalwarts are back in fashion, with investors looking for consistent, income-driving stocks as a companion to the jam tomorrow tech titans which have dominated US markets over the past couple of years,’ said Hewson.
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