The FTSE 100 index has cemented a landmark position above the 10,000-point threshold, closing Monday's session at a record high of 10,122.73. This represents a significant gain of 1.12 per cent, continuing a bullish trend for the UK's premier blue-chip index.
Drivers of the Record Rally
The surge was propelled by standout performances from key constituent companies. High street giant Next saw its shares rally by four per cent after reporting better-than-expected Christmas trading figures. In a major boost for the pharmaceuticals sector, AstraZeneca, the most valuable stock on the London market, soared by five per cent. This jump followed a positive analyst note from investment bank JP Morgan.
Further contributing to the upbeat mood, Lloyds Banking Group shares surpassed the 100p mark, reaching a price level not seen in 17 years. The widespread gains across the index underscore a renewed sense of confidence among investors in London's financial heart.
IPO Pipeline Set for a 2026 Revival
Amid the equity market strength, analysts are beginning to forecast a rebound in Initial Public Offering (IPO) activity for the year ahead. This follows a relatively quiet 2025, which saw subdued revenue from new listings.
The final quarter of last year witnessed 11 IPOs on the UK market, raising a total of £1.9 billion. Notable listings included Shawbrook Bank and The Beauty Tech Group, bringing the annual total to 23. The expectation is for this pipeline to see an uptick in activity during the first half of 2026.
Budget Reforms Aim to Galvanise Listings
This predicted revival is largely attributed to recent reforms to the UK's listing regime, which were introduced in the Autumn Budget. Chancellor Rachel Reeves launched a stamp duty holiday for new listings as a central part of her strategy to attract more companies to go public in London.
With several companies reportedly lined up and considering a listing in the coming year, the market will be watching closely to see if these governmental efforts to boost the City's competitiveness will yield tangible results. The success of this initiative is now in the hands of the market and the listing hopefuls themselves.
