FTSE 100 to hit 8,000 next year says Citi

18th September 2013

The UK’s benchmark index is set to break through the 8,000 mark by the end of next year according to Citigroup writes Philip Scott.

In an analyst note from the institution, as reported in The Telegraph, it asserted that declining concern over a break-up of the eurozone, combined with improving bank balance sheets and corporate earnings will boost investor appetite for stocks. To reach 8,000 the index would have to climb by 22% from its current level of circa 6,544.

A renaissance of what it describes as “animal spirits” in group boardrooms, on the back of a pick-up in merger and acquisition activity, will also help drive shares higher, the Citi strategists said.

The FTSE 100’s all-time high was reached in December 1999, at the height of the dotcom boom when it hit 6,950.6.

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