Susannah Streeter, an independent financial commentator, said the 10,000-point marker was “a psychologically important milestone” and showed London’s blue-chip index was “back in favour” with investors.
“Concerns continue to swirl about the super-high valuation of US tech sector,” she said, making the UK market more appealing.
Dan Coatsworth, head of markets at investment platform AJ Bell, said crossing the 10,000-point was a New Year’s gift for the chancellor, Rachel Reeves, who has been calling for more investment in the UK share market to boost economic growth.
“She has been banging the drum about the merits of investing over parking cash in the bank.
“The FTSE 100’s achievements just go to show what’s possible when buying UK shares,” he said.
While London-quoted companies were sometimes considered “old and boring”, the mix of industries, including mining and banking, appealed to investors seeking stability during uncertain times, he said.
“Investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world.
“For example, we all need to pay insurance or water bills, or those in the habit are still likely to buy cigarettes or vapes, and the FTSE 100 has plenty of companies playing on these themes on offer.”
