FTSE finishes best January since 1989

 
Julian Harris
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LONDON’S blue chip market has enjoyed its best January since 1989, despite slipping on the final day of the month, yesterday.

The FTSE 100 lost 46.23 points to close 0.73 per cent down at 6,276.88.

Yet despite this final day dip, the index has nonetheless gained a considerable 6.43 per cent since the start of 2013 – the sharpest January jump for 24 years.

Shrugging off lingering global economic fears, the FTSE has gained 379.07 points since the beginning of the year – adding an approximate £96bn to the value of the top 100 listed companies.

The increase was narrowly higher than the 6.29 per cent rise that the FTSE put on in January 1998.

It was the third best starting month to a year since the index was launched in 1984.

The steepest ever January jump came in 1989 when the FTSE shot up by an eye-watering 14.43 per cent. Two years earlier it had recorded a 7.7 per cent January increase.

Despite warning of near-term risks, Shore Capital strategist Gerard Lane said: “I still think the FTSE 100 will see 7,000 by the year-end and if you are a smart investor you invest for the 7,000 now rather than wait for a correction that might never happen.”