When it comes to the stock market in the UK, there is an index that is frequently mentioned: The FTSE

100. the FTSE 100 is by far the most widely used UK stock market indicator, so we will focus mainly on
this indicator to clarify the impact of the Brexit event on the UK stock market.

In February 2016, British Prime Minister David Cameron announced that the Government was to
recommend that the UK should remain in the EU and that the referendum would be held on 23 June.
This announcement led significant drop in the FTSE 100 index with a slump to 5,499 points in February.

However, the market recovered in June after further polls suggested a move back towards Remain.

After the referendum on June 23, the UK stock market has underperformed. The result was the leave
vote accounted for 51.89%

The index had closed at 6,338.10 at the end of June 23. But in the immediate aftermath of the
referendum, the FTSE 100 fell nearly 9% on June 24, with shares in the five largest British banks
particularly hard hit and nursing their biggest falls (average of 21%) since 2008. More than that, the vote
led to stock market crashed around the world, making it the worst single-day loss in history or Black
Friday for Britain. However, The London market, on the other hand, recovered some stability when the
Bank of England committed to intervene to help to shore up the markets. Those guarantees calmed
nervous markets and by afternoon trading, the FTSE 100 had erased some of its early losses. As a result,
FTSE 100 index still ended the week at 6138 points, even higher than its started-point of the week.

Afterthat , the FTSE 100 had shown a steady decline and had surrendered £85 billion. However, It had
recovered all of its losses by the end of the montha and officially joined the bull market in early July,
having climbed more than 20% from its February low.

According to the London stock exchange, the index increased by around £141bn during 2017. The final
trading day of 2017 ended with a flourish, with the FTSE 100 closing up 64 points.

In 2018, Britain’s leading stock market index has suffered its worst year in a decade partly due to
economic worries, Brexit uncertainty and the main reason of this significant drop is the trade war
between the US and China. The FTSE 100 decrease by 12.5% during 2018 and wipped out more than
£240bn of shareholder value.

After the day that the UK officially left the EU,Britain’s blue-chip share index has suffered its worst year
since the 2008, the FTSE crashed by over 34% in the first few months of 2020. The FTSE 100 index had a
small fluctuation on the day the UK officially left the EU, but not significantly. It was only when the British
Prime Minister issued a social distance directive due to comlex situation of covid 19 pandemic that the
index dropped to 4,994 points.

During the term of 2021-2022, the FTSE 100 has recorded its best year since 2016, as UK stocks
recovered from the pandemic shock of 2020. Because of the impact of the covid pandemic and the
uncertainty of Brexit, the outbreak of war between Russia and Ukraine, the stock market experienced
slight volatile durings first months of 2022. The lowest in the first three months was 6959.48 points.