The index charting the performance of the largest companies in the UK has secured an historic winning streak after rising for the 12th consecutive day.
The FTSE 100 overshot the 7,300 mark yesterday (11 January) before closing at 7,290.49, which is the 10th record high in a row.
This is the longest winning run the index has seen since it started 33 years ago.
Laith Khalaf, senior analyst at Hargreaves Lansdown, pointed out that since the winning streak began on 21 December, it has been the mining companies which have scooped up the biggest returns.
Some domestically-focussed stocks have also done well with Persimmon, Taylor Wimpey, Whitbread and Sainsbury all near the top of the performance table.
Mr Khalaf said this suggests some optimism towards the prospects for UK companies, which is driving the market upward too.
Despite these record performance levels, investment veteran Gareth Lewis said the FTSE would actually be down if you stripped out the oil and mining sectors, suggesting investors are “better off” investing in smaller companies.
But other investors are describing this as a “sea change” in the markets as the FTSE falls back in favour following two years of bad performance.
Mr Khalaf said the winter rally has shown it has “considerable legs”, but warned the winning streak won’t go on forever.
“It’s important not to get too carried away with the recent run of good form; over such a short time frame it’s best to take stock market movements with a pinch of salt, whether they are good or bad.”
The Hargreaves analyst also pointed out that most people are invested in the stock market through their pension or Isa, and said it’s therefore “crucial” to look at the market over the long-term.
“That’s really where you get the very best returns from stocks compared to other assets.’
