The Financial Times Stock Exchange 100 Index is a market index that features 100 of the top-performing companies listed on London Stock Exchange. It acts as an index benchmark in the UK stock exchange and attracts international investors. This article will examine the history, composition, significance, and impact of this important index.
History of FTSE 100
The FTSE 100 was created in 1984. It originally consisted of 100 companies with the greatest market capitalizations on the London Stock Exchange. The index has been updated to reflect changes in market conditions due to acquisitions, mergers, and bankruptcy. It reached 7,877 points in May 2018, its highest point.
Composition of FTSE 100
The FTSE 100 is a collection of companies across finance, energy, mining and consumer goods. Notable names in the index include HSBC Holdings (BP), Unilever GlaxoSmithKline, Royal Dutch Shell and HSBC Holdings.
Significance FTSE 100
Investors worldwide closely follow the FTSE 100 as a key benchmark for the UK stock exchange. The index is used to gauge economic health in the UK and changes in it often reflect changes in market conditions. Investors can use FTSE 100 to assess market sentiment and make informed investments with confidence.
Investing with the FTSE 100
Investors can access the FTSE100 through a variety of investment vehicles such as exchange-traded funds (ETFs) and index funds. These investment vehicles offer investors a diversified portfolio that includes companies listed on FTSE 100 and provide exposure to the UK stock markets with minimal risk.
Conclusion
The FTSE 100, a prominent stock market index, plays a key role in the UK economy. The index includes companies from many industries. It provides investors with valuable data that can help them make informed investment decisions. The FTSE 100 gives investors many options to gain exposure to UK stock markets, regardless of whether they invest directly or through investment vehicles.
