The Financial Times Stock Exchange 100 Index or FTSE 100 is a stock market index that ranks 100 of London Stock Exchange’s best-performing companies. It acts as an indicator benchmark for the UK stockmarket and attracts global investors. We will be looking at the history and significance of this index in detail.
History of FTSE 100
In 1984, the FTSE 100 included 100 companies that had the highest market capitalizations at the London Stock Exchange. Over time, the index was adjusted to reflect changes in markets due to mergers or acquisitions and bankruptcies. In May 2018, the index reached its record high of 7,877 point.
Composition of FTSE 100
The FTSE 100 represents a diverse range of companies from the financial, energy, mining, consumer good and healthcare sectors. Notable names on this index include HSBC Holdings. BP.
Significance FTSE 100
Investors from all over the world are closely following the FTSE 100 index, which is a strong benchmark for UK stock market performance. It acts as a barometer of the UK’s economic state, and changes to the index are often indicative of changes in conditions. Investors have the ability to use the FTSE 100 index to gauge market sentiment and make informed decisions about investing.
Investing the FTSE 100
Investors can have access to the FTSE100 through various investment vehicles including exchange-traded and index funds. These investments give investors a diversified portfolio including companies listed on FTSE 100. They provide minimal risk exposure to UK stock market.
Conclusion
The FTSE 100 index is a significant stock market indicator that plays a critical role in the UK’s economy. It is made up of companies from various industries. Investors can use this data to make informed decisions about their investments. The FTSE 100 allows investors to have exposure to the UK stockmarket, whether they are directly investing in the index or using investment tools.
