This is clearly a very bad time for the FTSE100 index as it closed at 6,997 after 10 consecutive trading sessions above the 7,000 mark. This decline is considered as the sharpest ever decline since August 19. Notably, the time is also not good for the FTSE250 index, as it fell, even more, by 1.4% to 22,413.
However, the UK focused FTSE100 is believed to suffer higher declines than the FTSE250, which means, this is more worrisome for the UK investors.
Also Read our investor guide on How to Trade Indices UK
The FTSE 100 Index just like S&P mirrors the UK’s top-performing 100 companies. It keeps the track of 100 large scale companies that are listed on the London Stock Exchange. Investing in FTSE 100 gives you exposure to the wider UK economy over the course of time. FTSE 100 works the same as the S&P 500, buying FTSE100 simply means you are buying 100 different shares. That means you are diversifying your investment portfolio, much like S&P 500, in this also you will recover dividends, Index will be rebalanced and re-weighed every three months.
The losers among FTSE 100 stocks are Chilean copper miners, Antofagasta. This copper miner experienced a very high fall of 5.5%. This stock has been declining for the past two months and has resulted in losing almost 16% of its value. Other losers are Next and JD sports Fashion, even the hospitality stock White bread have also fallen apart. All these stocks have fallen by 4%. The tobacco biggie Imperial Brands is also not doing great, and have left Investors in dismay. However, its situation is still better than other stocks that have fallen to their knees.
The rise in inflation is what feared Investors more as the gas prices have reached dizzying levels. That means, it can impact both economic and company performance. In this situation, Vladimir Putin, Russian President said that supplies to Europe can be increased.
Coming back to the dreadful situation of FTSE100, it is a must to know that not all the stocks were affected. Despite how badly FTSE100 fell, the supermarket stock Tesco however, had a massive gain of almost 6% after raising to its full-year guidance, by keeping sales and profits at a very high level in the first half of the year. HSBC is also among a few FTSE100 who have risen. HSBC has risen by 3.4%, which is a bit surprising. The stock at present has placed at a level which wasn’t seen since August, that is above 400p mark.