FTSE On Track For Best Performance Since 2009
The FTSE 100 is on track for its best performance since 2009, thanks in part to a pre-Christmas rally, which took the index into positive territory for the month of December.
The FTSE 100 touched 6678.61 on December 23rd, an increase of 72.03 points on the day, taking the index up past the 6650 mark which it opened the month on. The index is currently sitting 13% higher than it was in January, putting it on track for its best annual performance since the year 2009, which saw the index increase by 22% over the course of the year.
The index has performed well this year thanks to signs of worldwide economic recovery, and the positive comments from the International Monetary Fund boosted investor confidence in December. Some analysts expected that the US Federal Reserve's decision to announce the tapering of their $85 billion a month bond-buying program, at a rate of $10 billion initially, would hamper the index. This does not seem to have been the case.
The FTSE 100 saw some notable additions this year, including Royal Mail, who floated at 330p, and was added to the index after soaring to more than 590p per share, and Ashtead, who entered the index at 773p, but saw its share value slip by 9p upon joining the major index.
The FTSE 100 may not break the 7,000 barrier before the end of 2014, but it does seem that it will finish the year on a high note.