The FTSE All-Share index has seen a positive year so far, with a gain of over 10 per cent. Amid concerns about the UK market’s health, potential changes to the index are on the horizon. However, the most high-profile candidates for inclusion may not make the cut.

Unilever’s potential ice cream spin-off is expected to be a Dutch affair, while fast fashion seller Shein and French broadcast giant Canal+ are considering IPOs. These developments could shake up the market, especially if rumors of ITV takeover interest materialize.

Despite these potential additions, current listing rules may prevent these businesses from qualifying for the FTSE indices. Instead, mid-cap companies like Oxford Nanopore and Deliveroo, as well as possibly a large-cap like Wise, are poised for inclusion due to the FCA overhauling its listing rules.

Deliveroo could replace Just Eat Takeaway, which left the UK market for its Amsterdam listing in 2021. The turnover in the market reflects a dynamic environment that is necessary for growth. However, the UK market has seen a decrease in the number of smaller index shares over the past year.

To address this issue, initiatives such as the Pisces exchange for trading private companies are being launched to boost the IPO pipeline. The government’s efforts to encourage London listings, including meeting with unquoted ‘unicorns,’ aim to stimulate market activity.

Despite these initiatives, the UK market faces challenges in attracting funds and investors. The FTSE’s performance, while positive, lags behind the S&P 500 and other global markets. Speculation about potential tariffs and trade wars adds to the uncertainty, with opinions divided on the potential impact on the UK economy.

In the face of global economic uncertainties, domestic large-caps tend to perform well during times of market stress. While a trade war could dampen global growth and IPO activity, it may also redirect focus and investment towards UK shares.

Overall, policymakers are working to address these challenges and uncertainties. In the short term, a significant event may be needed to shift the spotlight back to UK shares and stimulate market activity.