FTSE 100 Surges to Record High, Nearing 11,000 Points
The blue-chip index closed at an all-time high, driven by rising oil prices and strong corporate earnings.
The FTSE 100 index is approaching the 11,000-point mark, having closed at a record high on Friday, buoyed by a surge in oil prices and a series of strong corporate results. London's primary stock market index gained 0.31 percent, or 33.20 points, to finish at 10,901.09, its highest level since before the Iran war.
This year, the FTSE 100 has seen a nearly 10 percent increase, building on a strong performance in 2025, which marked its best year since the financial crisis recovery. The index had been on a trajectory towards 11,000 points prior to the outbreak of the Middle East conflict, but experienced a downturn amid renewed inflation concerns. After falling below 10,000 points in March, its recovery has been gradual, with rising oil prices and robust corporate earnings providing recent momentum.
Mining stocks were prominent on Friday, with Fresnillo and Endeavour Mining posting significant gains of 4.6 percent and 4.06 percent, respectively. Consumer-focused companies also saw positive movement this week, notably Diageo, which closed up 3.32 percent after announcing a £740 million cost-cutting initiative. This restructuring will involve changes to regional teams and the supply chain, including job reductions, following a period of declining sales.
JD Sports also saw its share price increase by 1.58 percent following the announcement of a new chairman. Peter Agnefjäll is set to join in September, succeeding Andy Higginson, who departed in April amid reports of an attempt to remove chief executive Régis Shultz.
Advertising giant WPP experienced a substantial rise, gaining nearly 38 percent this week after its half-year update. Investors responded positively to indications that the company's turnaround plan is progressing, with a less severe decline in sales than anticipated.
The FTSE 100's historical struggle to match the performance of US markets, attributed to a lack of prominent technology stocks, has inadvertently benefited the index this year. As investors grow wary of a potential artificial intelligence bubble, there has been a shift towards the value stocks that form the foundation of London's market. Mining stocks have benefited from demand for commodities like copper, while energy majors have been supported by higher oil prices. Additionally, the relatively low valuations of UK equities, coupled with increased interest in takeovers, share buybacks, and special dividends from overseas investors, have contributed to the market's appeal.
The more domestically-focused FTSE 250 index also reached an all-time high on Friday, climbing 0.65 percent, or 159.44 points, to close at 24,854.86. This rise follows a wave of takeover offers that have boosted share prices, including Easyjet's confirmed £5.7 billion takeover by private equity firm Apollo.
These developments in the UK market align with a broader positive trend in global equities, with both the S&P 500 and Nasdaq anticipated to end the week on an upward trajectory.