The FTSE100 is a benchmark index within the UK consisting of 100 blue-chip companies that are listed on the London Stock Exchange. This index is commonly referred to as the 'Footsie' and it is probably the most popular stock market index in Europe. It was first launched in 1984, with a base level 1,000 points, in 2019 it the FTSE 100 was recorded to be at a level of over 7,000 points.
The FTSE100 is a market-cap weighted index. This means that the companies in the index which have a higher market cap percentage will hold the higher weight of the index. Considerations and adjustments of the index occur every quarter, but the index is published and refreshed every 15 seconds.
The council which determines the company that goes in the index sits four times a year in March, June, September, and December. The market capitalisation of the company is calculated by multiplying the number of shares that have been issued by the company, by its current share price. To be considered for the index, each company will have to submit its Quarterly financial reports to the FTSE group, it must also be currently listed on the London Stock Exchange, as well as meeting other requirements such a liquidity levels.
Even though the FTSE 100 is used most by traders it doesn't give an overall picture of the UK's economic health. The FTSE250 is the index used to gauge this as it also contains a small percentage of internationally focused companies.
While it includes companies listed in the UK, most of the companies included are recognised as global companies. Several of the largest mining companies in the world are listed in London, so it is known as the stock index most heavily weighted toward resource prices. Well-known companies in the index include Barclays, BP, BHP, GlaxoSmithKline, Tesco and Rolls-Royce Holdings. The Royal Dutch is an example of a company that has preserved its place on the index over a number of years, despite an international oil price crisis.
UK100 Historical data
The UK100 has risen from below 4,000 during the Global Financial Crisis to over 7,500 in less than 10 years. It has been more volatile than other Indices this is due to the uncertainty that has been derived from Brexit and political instability.
How to trade UK100 with Eightcap?
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