FTSE 100 passes through 7,000 to set record

FTSE 100 passes through 7,000 to set record

The FTSE 100 has passed 7,000 for the first time in its history.

The benchmark UK large cap equity index broke the record earlier this afternoon when it rose 0.7 per cent to 7,008.78.

Its previous record was set yesterday when it closed at 6,962, marginally higher than the previous record of 6,961 set on 5 March.

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The rise has been led by Irish cement firm CRH but other risers also included mining firms and oil and gas stocks.

Jeremy Whitley, head of pan-European equities at Aberdeen Asset Management, said: “It’s rather appropriate that the FTSE 100 surpasses 7,000 on the same day as the solar eclipse plunged parts of the UK into darkness.

“The stock market has been sunny for investors over the past two years rallying strongly.

“However, this has been driven not by an increase in earnings but by an inexorable rise in valuations.

“Consequently we may be in for a period of dull returns until there are visible rays of sunshine in terms of both improved economic conditions and most importantly corporate profit growth.”

Jason Hollands, head of communications for London-based Tilney Bestinvest, said: “When drawing comparisons between the UK stock market now and at the peak of the dot com bubble in 1999 it is also vital to factor in the impact of inflation over the last 15 years.

“We estimate that once adjusted for inflation, as measured by the UK Consumer Price Index, the FTSE 100 Index would currently need to be at around circa 9,500 points to be comparable with its 1999 peak of 6,930 points. That’s a long way off where we are now.”