UK100

"Footsie", or more formally FTSE 100, also known as UK100, is the index that tracks the 100 largest companies listed on the London Stock Exchange.

Stocks within the UK100 are weighted by free-float market capitalisation and must meet certain requirements, such as denomination in pounds, and free-float and liquidity thresholds.

The index is widely considered a benchmark of the UK economy; however, many companies within it have a wider international focus, so their performance does not completely represent the UK stock market.

Some of the most well-known companies included in the index are Intercontinental hotels, Unilever and British American Tobacco.

The price of the UK100 index can be affected by the following factors:

• Monetary policy of the Bank of England
  Increasing interest rates tend to cause declines in the index's performance as it makes it more expensive for companies to borrow funds to finance expansion or other plans.


• Earnings reports
  Under or over performing companies whose stocks have a large weighting within the index can affect the index's overall value.


• Geopolitical events
  Brexit, for example, brought the biggest decline in the index since the 2008 recession.


• The pound's exchange rate
  Due to a large global exposure and dependence on international trading relations.


• Oil prices
  The UK 100 has some of the biggest oil-related companies that can either increase or decrease its value because of the fluctuations.