Citigroup: FTSE to reach 8,000 by end of 2014

The FTSE 100 will soar past its record high to reach 8,000 by the end of 2014, according to analysts at Citigroup.

Analysts at the bank said a more settled eurozone and improving bank balance sheets will lead to a clamour for UK equities. A pick-up in mergers and acquisitions spurred by "animalistic" boardroom activity will also help sentiment, the note said. Yesterday, the FTSE closed at 6,570, meaning the index would have to rise nearly 22% before hitting 8,000. Shares have never traded above 6,930, reached during the dotcom boom in 1999. Earlier this month, Old Mutual's Richard Buxton also predicted the FTSE would hit record highs, although at a more modest level of 7,300. "In 2014, we...