The FTSE 100 finished Friday at 7210.05 and is now almost five per cent higher than at the start of December.
And experts believe the blue-chip index could keep rising in 2017, as Britain's economy continues to boom.
Investor confidence in UK companies is also expected to hold firm amid the withdrawal from the European Union (EU).
Low interest rates, the weaker pound, increased Government spending and higher oil prices are among the reasons stocks could keep rising.
Market analyst at Think Markets, Naeem Aslam, predicts the FTSE 100 could soar another 25 per cent.
He said: "We have projected the level of 9,000 for the FTSE 100 on the basis of softer Brexit.
"If we have soft Brexit, the FTSE 100 could perform really well, because if you look at the economic data for the UK, it has performed extremely well."
Weaker sterling has been a particular boost to companies listed in premier index, as it has increased the value of overseas earnings and helped boost exports.
Julian Jessop from Capital Economics predicts the index will reach 7,500 by the end of 2017.
He said: "Some of the factors that supported UK equities in 2016 are set to continue to support the economy in 2017.
"The latest readings from the global PMIs suggest that the prospects for the world economy are reasonably bright.
"Sterling’s weakness also looks set to boost exports further."
Richard Stone, chief executive of The Share Centre, added: "With the overseas earnings of FTSE 100 companies supported by weak sterling, with fiscal loosening in the US and the UK following the respective votes in 2016, and with low interest rates, there are a number of reasons why investors may look optimistically into 2017.