On the final trading day of the year, the London Stock Exchange has seen a climb, with the prestigious FTSE 100 index picking up more than 50 points, closing out 2024 on a positive note. This upbeat mood has been mirrored across UK markets with the FTSE 250 enjoying a surge of over 1%, and even France’s Cac 40 has experienced an uplift.
The FTSE 100 climbed by 52.01 points, or 0.64%, finishing at 8,173.02 just post the midpoint of New Year’s Eve – when European markets traditionally wrap up early ahead of the holiday. Boosted by the performance of mining and oil shares, the index signed off the year almost 6% higher compared to its standing as 2023 wound down.
Eclipsing previous records, the FTSE hit a peak in May that hadn’t been reached before, going over the 8,400 threshold. Despite this high, subsequent months witnessed more steady trading.
Matt Britzman, a top-ranking equity analyst from Hargreaves Lansdown remarked: “The FTSE 100 wrapped up 2024 on a high note, shaking off a slow start to the session to finish the year in positive territory. ”.
He added, “After an impressive climb early on, the index hit an all-time high in May but couldn’t quite muster the momentum to break out of a range-bound pattern in the months that followed – ending the year up 5.8%. ” Beyond the UK, the hustle was less pronounced as Britzman explained, “Meanwhile, it played second fiddle to the tech-fuelled US markets, where AI (artificial intelligence) excitement sent the S&P 500 soaring.”
For UK investors, 2024 shaped up to be a rollercoaster with several unexpected developments, including two reductions in interest rates which provided some cushioning, while a budget that increased taxes exerted strain on certain local businesses.
“It was a year of resilience rather than runaway success for the UK’s blue-chip benchmark.”
The US markets had not yet opened at the time of Europe’s early close. Over in Paris, the Cac 40 saw an increase of about 0.8%.
Brent crude oil prices were up by 0.85%, standing at approximately 74.60 US dollars per barrel. Mr Britzman described it as a “year of range-bound trading”, indicating that the price fluctuated between a specific high and low price.
He also predicted a “potentially volatile 2025, with supply concerns, geopolitical tensions, and shifting US policy looming large”. On the last day of the year, the pound weakened against the US dollar, losing about 0.15% of its value, at 1.253.
Sterling also dipped slightly against the euro, down by about 0.1% at 1.205. It was a quiet day for company news on London’s equity markets amid the post-Christmas lull.
Shares in DGI Innovate plummeted by 70% after the energy technology company announced plans to delist its shares from the London Stock Exchange. The research and development firm cited difficulties in raising sufficient funds for its commercialisation strategy this year, partly due to UK listing rules, but also due to a lack of investor demand for growing companies.
It stated that cancelling its shares from trading in London was necessary to reduce costs and facilitate growth. Meanwhile, shares in Wizz Air rose after the budget airline announced plans to return to growth in 2026.
The London-listed Hungarian company announced that it has secured a commercial support agreement with engine manufacturer Pratt & Whitney until the end of 2026, and is taking steps to counteract aircraft grounding measures. Its share price ended the day 1.2% higher.
The top performers on the FTSE 100 were JD Sports, which rose by 2.48p to 93.58p, Pershing Square, which increased by 100p to 3,905p, Segro, which climbed by 13.4p to 685.8p, Endeavour Mining, which went up by 27p to 1,419.5p, and St James’s Place, which gained 15.5p to reach 851.25p. On the other hand, the biggest losers on the FTSE 100 were Sage Group, which fell by 8.5p to 1,328p, Rightmove, which dropped by 3.8p to 631.5p, IAG, which decreased by 1.6p to 299.65p, CocaCola HBC, which lost 10p to land at 2,728p, and 3i Group, which declined by 11p to 3,542.5p.
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