FTSE 100 Ends the Year on a Record High

It was another record-breaking day for the FTSE 100 and a perfect end to 2016 as the index closed the year on a fine run. It got a 0.3 percent bump in the closing minutes to edge up to 7142.83 points. It was the third time this week the benchmark share index hit a new record. The blue-chip index surpassed the previous high of 7,103.98 points reached in April 2015 on Wednesday 28^th December. It then closed above 7,120 points yesterday due to the increased price of gold and the ensuing swell in share prices experienced by miners. Coca-Cola Hellenic Bottling Company led the charge today, with a 1.9 percent increase bringing it to 1,807 points. Real estate companies Hammerson, Land Securities and Intu also had big increments.

Rolls-Royce and BT weren’t as chipper, being the biggest losers. The former was down 1.5 percent to 669p, while the former fell 1.1 percent to 366.4p. The FTSE’s rise in the latter half of the year has been helped by the declining value of the pound. Though the index is up 14 percent this year, it is still 4 percent lower in dollar terms. Investors have been as eager as anticipated, to stock up as much as they can, given the current situation. This has turned out to be one advantage of the Brexit referendum. Market analyst for IG, Joshua Mahony, shared the same sentiment as other investors that these highs could still be outdone. “European markets are looking to close out 2016 on a somewhat downbeat note, with profit taking place amid a market that is largely devoid of liquidity,” he said.

“The volatility synonymous with low volumes has been largely missing of late, and instead there has simply been a strong element of indecision. With the FTSE 100 having made two attempts at new all-time highs this week, there is a chance that we could start the New Year with both UK and US indices hitting new highs.”