FTSE 100 breaks 15-year record to reach all-time high

THE FTSE 100 reached an all-time high yesterday as it closed at 6,949.63 – beating the previous record close of 6,930.2, which was reached on December 30, 1999.

However Andrew Feldhaus, investment manager at Leeds-based Redmayne-Bentley, warned the market is braced for further volatility because of the uncertainties created by political events.

The FTSE 100, now in its 32nd year, also achieved a new intra-day high, peaking at 6,958.89. Shares rose after eurozone finance ministers approved reform proposals submitted by Greece.

Andrew Feldhaus, investment manager at Leeds-based stockbroking firm Redmayne-Bentley, said: “The market dislikes uncertainty. But with European acceptance of Greece’s economic reform proposals, the eurozone finance ministers have extended the bail-out for a further period.

“This has helped to improve sentiment in the market and led to the FTSE closing at a new all-time high. But of course, further uncertainties will unsurface again as this is merely ‘kicking the can further down the road.’

“One would expect volatility to persist in the market, given the other uncertainties out there, including the situation in the Ukraine and the General Election on the horizon this year.”

Long-term low interest rates and the steady, if fragile, improvement in the economy has maintained the attractiveness of equity investment.