What is the FTSE 100

September 15, 2023

Interested in investing in British companies but don’t know where to start? It’s simple, get acquainted with Footsie. 

Key characteristics of the FTSE 100

FTSE 100, or Footsie, is one of the most widely followed and recognized stock market indices in the United Kingdom. It is also considered a key market performance indicator of the overall health of the UK stock market. The FTSE 100 includes companies from various sectors, such as finance, energy, pharmaceuticals, consumer goods, and more, which are selected based on their market capitalization. 

Among its key features are:

  1. Market Capitalization Weighted. The index is weighted by market capitalization, meaning that larger companies have a more significant impact on its value;
  2. Global Reach. Many companies listed in the FTSE 100 are multinational corporations with a global presence. It makes the index reflective not only of the UK economy but also of global economic trends.
  3. Dividend Yields. Historically, many FTSE 100 companies have paid attractive dividends to their shareholders. As a result, the index often appeals to income-focused investors seeking dividend income.

Investors and financial professionals use the FTSE 100 as a benchmark to assess the performance of the UK stock market and make investment decisions. A commonly used method to evaluate and make predictions about the price movements of FTSE 100 assets is technical analysis. By studying the patterns of past price movements during a trading session, investors can identify potential support and resistance levels, which are areas where the price is likely to find buyers or sellers.

Overall, the FTSE 100 is a crucial tool for tracking the performance of the UK's top publicly traded companies and for understanding broader stock market trends in the British economy.

FTSE 100: TOP 3 index rises

Lately, the FTSE 100 index rose by 1.72% and was boosted by gains in energy stocks as oil prices rose. Here are the TOP 3 risers.

Ocado Group PLC

Ocado Group PLC, a prominent British online grocery retailer, experienced a substantial surge in its stock price. Over the past several months, Ocado's shares have consistently followed an upward trajectory, achieving a remarkable gain of over 50% over the past year. 

Persimmon PLC

Persimmon PLC, a leading British house builder, had a substantial uptick in its stock performance. After experiencing a significant decline in 2022, Persimmon's shares have been on a robust recovery path in recent months. Persimmon also recently announced that it is raising its dividend, which is affecting investor sentiment. 

Prudential PLC

The shares of Prudential PLC, a British insurance company, rose by 4.18%. Over the past few months, Prudential's shares have maintained a consistent upward trajectory, reflecting the growing market optimism among investors regarding the company's future outlook.

For more information about market indices that will help you with early trade, check out other useful articles on YouHold.