LONDON — The FTSE 100 enjoyed its ninth straight record close on Tuesday, breaking the stock market’s record for consecutive highs.
The bluechip index closed up 0.50%, or 35.98 points on Tuesday, at 7,273.75. It’s the ninth straight record high for the index, topping the previous record bull run recorded in 1987.
This means the FTSE has never been so high and the nine consecutive record closes is also a record.
The record-breaking run isn’t being cheered by fanfare in the City however. Connor Campbell, a market analyst at SpreadEx, said in an email: “The FTSE’s consistent gains may see the index at all-time highs, but by God it’s been a dreary process.
“Tuesday has been the latest in a string of excitement-free trading sessions, something that hasn’t stopped the UK index from incrementally building on its current peak.”
The FTSE’s bull run has largely been sparked by the fall in the pound since June’s referendum. The FTSE 100 is mostly made up of global corporations who report their earnings in dollars, however, their stock is bought and sold in pounds. If the pound falls against the dollar, stocks suddenly look cheap and demand pushes the price higher. In fact, if you strip out the currency effects the FTSE 100 actually performed better last year.
Tuesday is no different, with sterling driving prices. Neil Wilson, a market analyst at ETX Capital, said in an email: “The FTSE 100 is breaking records all over the place as investors pile into companies that derive their earnings from abroad.
“Buoyed by sterling weakness, the big miners are providing the juice for the rise. The other main risers are supermarkets Tesco and Morrisons after the latter’s Christmas trading update beat expectations.”
Mining giant Anglo American ended up a huge 7.5%, while Rio Tinto wasn’t far behind, up 5.4X%, and BHP Billiton climbed 4.4%.
Morrisons ended the day up 3.8% after upgrading its profit forecasts but was bested by rival Tesco, which closed up 6.2%. While Tesco has yet to report on its Christmas trading (figures come on Thursday) but investors were excited by market share figures from data provider Kantar suggesting the supermarket was the big winner of the festive season.