18th May 2012
FTSE Breaks Through The 5000 Barrier
9th Sep 2009
The FTSE 100 Index has broken the 5000 barrier for the first time since October when the banking crisis triggered a global market meltdown.
The FTSE has been boosted by recent positive data on the economy.
Hopes that the recession could soon end following a raft of positive news on the economy have encouraged investors. The blue-chip index has now bounced back 44% from the six-year lows seen in March. It has reached its highest point since October 3 last year - the last time the market closed above 5000 was in September 26.
The index moved up towards 5000 through the afternoon before edging back and forth across the barrier.
David Jones, chief market strategist at IG Index, said the market would remain strong in the short-term.
"Based on current momentum at the moment it seems very strong and there seems to be, in the short term at least, no stopping the market," he said. "5000 is just a bit of a psychological level anyway - what people will be looking for is it reaching more like 5400, which was last seen in the middle of September (2008)."
The market's running higher in the past six months has been driven by the easing of the crisis in the banking sector after a series of Government bailouts.
Miners also account for a large chunk of the Footsie and metals prices have been boosted by a combination of recovery hopes and a weak US dollar - encouraging wary investors to buy commodities as a hedge.
Today's rise was led by travel giant Thomas Cook and airline British Airways after aircraft manufacturer Airbus predicted the industry would emerge from the doldrums with a 4% rise in air travel next year.
