FTSE 100 Index

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FTSE 100 Index
FTSE 100 index chart since 1984.png
FTSE 100 Index performance between 1984 and 2015
Foundation 1984[1]
Operator FTSE Group[1]
Exchanges London Stock Exchange[1]
Constituents 101[1]
Type Large cap
Market cap £1.904 trillion
(as of March 2015)[1]
Weighting method Capitalization-weighted[1]
Related indices
Website [1]

The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" /ˈfʊts/, is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. It is seen as a gauge of prosperity for businesses regulated by UK company law. The index is maintained by the FTSE Group, a subsidiary of the London Stock Exchange Group.

The index began on 3 January 1984 at the base level of 1000; the highest closing value reached to date is 7103.98 (with an intra-day high of 7122.74), on 27 April 2015[2] - the previous peak having been over 15 years previously, on the last trading day of 1999 during the dot-com bubble.[3][4][5] After falling during the financial crisis of 2007-2010 to below 3500 in March 2009, the index recovered to a peak of 6091.33 on 8 February 2011, fell under the 5000 mark on the morning of 23 September 2011, but reached its record high on the market close of 27 April 2015, more than doubling in value from the crash in 2009.[6]

Overview

The index is maintained by the FTSE Group, a now wholly owned subsidiary of the London Stock Exchange which originated as a joint venture between the Financial Times and the London Stock Exchange. It is calculated in real time and published every 15 seconds when the market is open.

The FTSE 100 consists of the largest 100 qualifying UK companies by full market value.[7] A large slice of these are international companies, however, so the index's movements are a fairly weak indicator of how the UK economy is faring.[8] A better indication of the UK economy is the FTSE 250 as it contains a smaller proportion of international companies.[9] The constituents of the FTSE are determined quarterly, on the Wednesday after the first Friday of the month in March, June, September and December. The values used to make the changes to the indices are taken at the close of business the night before the review.[10]

FTSE 100 companies represent about 81% of the entire market capitalisation of the London Stock Exchange. Even though the FTSE All-Share Index is more comprehensive, the FTSE 100 is by far the most widely used UK stock market indicator. Other related indices are the FTSE 250 Index (which includes the next largest 250 companies after the FTSE 100), the FTSE 350 Index (which is the aggregation of the FTSE 100 and 250), FTSE SmallCap Index and FTSE Fledgling Index. The FTSE All-Share aggregates the FTSE 100, FTSE 250 and FTSE SmallCap.

Component companies must meet a number of requirements set out by the FTSE Group, including having a full listing on the London Stock Exchange with a Sterling or Euro denominated price on the Stock Exchange Electronic Trading Service, and meeting certain tests on nationality, free float, and liquidity.

Continuous trading on the London Stock Exchange starts at 08:00 and ends at 16:30 (when the closing auction starts), and closing values are taken at 16:35.

Weighting

In the FTSE indices, share prices are weighted by market capitalisation, so that the larger companies make more of a difference to the index than smaller companies. The basic formula for these indices is:[11]


\text{Index level}=\frac{\sum_i \text{Price of stock}_i\times\text{Number of shares}_i \times\text{Free float adjustment factor}_i}{\text{Index divisor}}

The Free float Adjustment factor represents the percentage of all issued shares that are readily available for trading. The factor is then rounded up to the nearest multiple of 5%. To find the free-float capitalisation of a company, first find its market cap (number of shares x share price) then multiply by its free-float factor. Free-float capitalisation, therefore, does not include restricted stocks, such as those held by company insiders.

Constituents by market capitalisation as of May 2014

The following table lists the FTSE 100 companies measured by market capitalisation as of 29 May 2014.[12][13] The numbers of employees are taken from company reports, mostly dated between 2011 and 2012. The index consists of 100 companies, but there are 101 listings, as Royal Dutch Shell has both A and B class shares listed. Schroders Non Voting shares were also listed until 1 June 2012 when the FTSE's stricter rules came into force.

Company Ticker Sector Market cap (£bn) Employees
Aberdeen Asset Management ADN Fund management 4.9 1,800
Admiral Group ADM Insurance 3.4 2,500
Aggreko AGK Generator hire 4.6 4,262
AMEC AMEC Consulting 3.3 29,000
Anglo American plc AAL Mining 26 100,000
Antofagasta ANTO Mining 10.7 4,005
ARM Holdings ARM Engineering 13 2,000
Associated British Foods ABF Food 14 102,000
AstraZeneca AZN Pharmaceuticals 38 57,200
Aviva AV Insurance 10.4 40,800
Babcock International BAB Engineering 3.9 34,000
BAE Systems BA Military 11.8 107,000
Barclays BARC Banking 37 150,000
BG Group BG Oil and gas 49 6,625
BHP Billiton BLT Mining 44 46,370
BP BP Oil and gas 85 97,700
British American Tobacco BTI Tobacco 69 87,813
British Land Co BLND Property 5.1 177
BSkyB BSY Media 14 22,800
BT Group BT.A Telecomms 20 89,000
Bunzl BNZL Industrial products 4.3 12,368
Burberry Group BRBY Fashion 6.1 9,000
Capita CPI Support Services 5.9 46,500
Carnival plc CUK Leisure 4.6 86,800
Centrica CNA Energy 18 40,000
Coca-Cola HBC AG CCH Consumer 5.6 38,312
Compass Group CPG Food 15 471,108
CRH plc CRH Building materials 10.9 76,433
Croda International CRDA Chemicals 3.5 3,200
Diageo DGE Beverages 50 25,000
Eurasian Natural Resources ENRC Mining 4.3 72,000
Evraz EVR Mining 3.5 110,000
Experian EXPN Information 11.7 17,000
Fresnillo plc FRES Mining 10.8 2,449
G4S GFS Security 4.1 657,125
GKN GKN Manufacturing 4.4 40,000
GlaxoSmithKline GSK Pharmaceuticals 73 97,389
Glencore International GLEN Mining 27 57,656
Hammerson HMSO Property 3.7 277
Hargreaves Lansdown HL Finance 4.1 650
HSBC HSBA Banking 129 267,000
IMI plc IMI Engineering 3.9 14,700
Imperial Tobacco Group IMT Tobacco 24 38,200
InterContinental Hotels Group IHG Hotels 5.7 345,000
International Consolidated Airlines Group SA IAG Transport air 4.5 58,476
Intertek Group ITRK Product testing 5.5 33,000
ITV plc ITV Media 4.8 4,059
J Sainsbury plc SBRY Supermarket 6.5 150,000
Johnson Matthey JMAT Chemicals 4.9 9,700
Kingfisher plc KGF Retail homeware 6.7 80,000
Land Securities Group LAND Property 6.6 700
Legal & General LGEN Insurance 9.5 9,324
Lloyds Banking Group LLOY Banking 36 120,449
Marks & Spencer Group MKS Retailer 5.9 81,223
Meggitt MGGT Engineering 3.6 7,370
Melrose plc MRO Engineering 3.2 10,000
Morrison Supermarkets MRW Supermarket 6.5 132,000
National Grid plc NG Energy 26 27,000
Next plc NXT Retail clothing 6.9 58,706
Old Mutual OML Insurance 10.2 54,368
Pearson plc PSO Education 9.6 37,000
Petrofac PFC Oil and gas 5.1 18,200
Prudential plc PRU Finance 25 25,414
Randgold Resources RRS Mining 4.9 6,954
Reckitt Benckiser RB Consumer goods 32 32,000
Reed Elsevier REL Publishing 8.9 30,200
Friends Life Group FLG Investment 3.7 40
Rexam REX Packaging 4.1 19,000
Rio Tinto Group RIO Mining 48 67,930
Rolls-Royce Group RR Manufacturing 19 55,500
Royal Bank of Scotland Group RBS Banking 18 150,000
Royal Dutch Shell RDSA Oil and gas 135 90,000
RSA Insurance Group RSA Insurance 4.2 21,000
SABMiller SAB Beverages 53 70,000
Sage Group SGE IT 4.3 12,300
Schroders SDR Fund management 5.5 3,012
Serco SRP Outsourced services 3.1 100,000
Severn Trent SVT Water 3.8 8,051
Shire plc SHPG Pharmaceuticals 11.7 4,200
Smith & Nephew SNN Medical 6.4 11,000
Smiths Group SMIN Engineering 5.0 23,550
SSE plc SSE Energy 13 20,000
Standard Chartered STAN Banking 43 86,865
Standard Life SL Fund management 8.8 10,500
Tate & Lyle TATE Food 3.9 5,616
Tesco TSCO Supermarket 29 519,671
TUI Travel TT Leisure 3.5 53,000
Tullow Oil TLW Oil and gas 11.2 890
Unilever ULVR Consumer goods 34 171,000
United Utilities UU Water 5.0 5,096
Vedanta Resources VED Mining 1.2 32,000
Vodafone Group VOD Telecomms 83 86,373
Weir Group WEIR Engineering 5.0 14,000
Whitbread WTB Retail hospitality 4.5 86,800
Wolseley plc WOS Building materials 9.1 44,000
Wood Group WG. Oil and gas 0.8 41,000
WPP plc WPP Media 13 162,000
Xstrata XTA Mining 35 38,561

Current constituents

The current constituents following the changes of 18 December 2015 are as follows:[14]

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Past constituents

source: FTSE: FTSE 100 Constituent Changes PDF (57.9 KB)

FT 30

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The oldest continuous index in the UK is the FT 30, also known as the Financial Times Index or the FT Ordinary Index (FTOI).[179] It was established in 1935 and nowadays is largely obsolete due to its redundancy. It is similar to the Dow Jones Industrial Average, and companies listed are from the industrial and commercial sectors. Financial sector companies and government stocks are excluded.

Of the original constituents,[180] four are currently in the FTSE 100: Guest Keen & Nettlefolds (GKN), Tate & Lyle, Imperial Tobacco and Rolls-Royce, although Rolls-Royce has not been continuously listed and Imperial Tobacco was a subsidiary of Hanson for a number of years. ICI was removed when it was taken over by Akzo Nobel in January 2008. Two of the original FT 30 companies are still in that index:[181] GKN and Tate & Lyle (membership is not strictly based on market capitalisation, so this does not mean they are necessarily among the top thirty companies in the FTSE 100). The best performer from the original lineup has been Imperial Tobacco.[182]

See also

Other lists
Stock market lists

Notes

  1. 1.0 1.1 1.2 1.3 1.4 1.5 Lua error in package.lua at line 80: module 'strict' not found.
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  5. Lua error in package.lua at line 80: module 'strict' not found.
  6. Lua error in package.lua at line 80: module 'strict' not found.
  7. Ground Rules for the Management of The UK Series of the FTSE Actuaries Share Indices (section 5)
  8. Lua error in package.lua at line 80: module 'strict' not found.
  9. Lua error in package.lua at line 80: module 'strict' not found.
  10. FTSE UK Quarterly Review
  11. FTSE Capitalisation methodology via Wikinvest
  12. See 'FTSE All-Share Index Ranking (unofficial guide)'
  13. See also, Lua error in package.lua at line 80: module 'strict' not found.
  14. Lua error in package.lua at line 80: module 'strict' not found.
  15. Buoyant Lloyds TSB offloads insurer Abbey Life The Guardian, 1 August 2007
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  19. Pernod Ricard successfully completes acquisition of Allied Domecq, from the Pernod Ricard website
  20. Unification of companies Archived 26 January 2011 at the Wayback Machine
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  24. Argyll Group plc intends a stock buy back
  25. Worms & Cie launches tender offer
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  27. The Economist, The man who bought trouble. Consulted on 18 July 2007.
  28. International Trader
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  30. Bass to become Six Continents The Guardian, 27 June 2001
  31. 31.0 31.1 31.2 31.3 Lua error in package.lua at line 80: module 'strict' not found.
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  33. Rumours of Rentokil bid boost BET The Independent, 15 February 1996
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  35. Lua error in package.lua at line 80: module 'strict' not found.
  36. Lafarge bags Blue Circle The Daily Telegraph (London), 7 January 2001
  37. Statement on Linde homepage
  38. Bowater to change name to Rexam Plasteurope, 31 May 1995
  39. Avanex and Bookham become Oclaro Compound Semiconductor, 28 April 2009
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  41. Lua error in package.lua at line 80: module 'strict' not found.
  42. Brambles ditches London listing The Telegraph, 30 November 2005
  43. BAe set to sign A8bn GEC deal with merger The Guardian, 19 January 1999
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  48. Competition Commission Report 1988 Page 10
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  59. Akzo Nobel Buys Courtaulds & Columbian Firm Adhesives Age, 1 June 1998
  60. PIC International Group PLC Changes Name to Sygen International plc PR Newswire, 2001
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  63. 63.0 63.1 DSG, formerly known as Dixons, is now renamed ... Dixons The Telegraph, 25 June 2010
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  67. 67.0 67.1 Imetal to Buy ECC For $1.2 Billion ICIS, 8 February 1999
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  80. Gallaher agrees £7.5bn Japan Tobacco takeover The Scotsman
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  84. Closed-End Funds Open Plays for the Intrepid Investor International Herald Tribune, 21 January 1995
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  86. Lloyds-backed Alternative Hotels Group may be sold Daily Mail, 12 February 2011
  87. 87.0 87.1 Spirits soar at Diageo Food & Drug Packaging, July 2005
  88. Axa of France to buy Guardian of Britain New York Times, 2 February 1999
  89. GUS to split into two publicly traded units
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  94. Brush Traction: History
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  99. Gulf Resources & Chemical Corporation
  100. RWE is set to buy Innogy New York Times, 18 March 2002
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  106. Kingston Communications changes name to KCOM Group Comms Dealer, 16 August 2007
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  108. Rockwood launched Chemical Market Reporter, December 2000
  109. Eni swoops on Lasmo BBC News, 21 December 2000
  110. Grid and Lattice form utility supergroup The Telegraph, 22 April 2002
  111. London Electricity goes to France BBC News, 30 November 1998
  112. The Investment Case – Lonmin plc Moneyweb, 1 April 2011
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  114. Berisford International PLC acquires Magnet Ltd(Water Meadow Hldg) from Magnet Group PLC Alacrastore, 3 March 1994
  115. Bankruptcy Explanation By Maxwell New York Times, 18 December 1991
  116. Lua error in package.lua at line 80: module 'strict' not found.
  117. Harrold heralds start of new era at MEPC: Hermes man outlines new business plan for developer Property Week, 24 October 2003
  118. Merrill cleared to buy British Fund Manager New York Times, 24 December 1997
  119. MFI sells store chain in £1 deal BBC News, 22 September 2006
  120. Lua error in package.lua at line 80: module 'strict' not found.
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  122. Farrelly, Paul RBS issues ultimatum in £27bn bid for NatWest The Observer, 28 November 1999
  123. NFC and Ocean forge £3.2bn alliance to exploit e-commerce The Independent, 22 February 2000
  124. Boparan wins Northern Foods with £341m bid FT.com
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  129. P&O agrees bid from Dubai Ports BBC News, 29 November 2005
  130. EC Clears Carnival and P&O Princess Merge Marinelink, 11 February 2003
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  132. IPD Group: GEC History
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  137. RHM agrees £1.2bn Premier Foods bid Times-on-line, 4 December 2006
  138. Reckitt & Coleman announce further delay to Dutch merger The Independent, 7 November 1999.
  139. Redlands needs White Knights, The Independent, 16 October 1997
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  143. Mexican firm buys RMC for £2.3bn
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  151. 151.0 151.1 Two electric suppliers in Britain to merge New York Times, 2 September 1998
  152. Iberdrola to buy Scottish Power for £11.6bn International Herald Tribune, 28 November 2006
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  155. Marsh & McLennan to Buy Big British Insurance Broker New York Times, 26 August 1998
  156. Relief for Sema shareholders at Schlumberger buy-out The Independent, 12 February 2001
  157. Shell shareholders agree merger BBC News, 2005
  158. Proposed Merger of Smiths Industries plc: "Smiths Industries" and "TI Group" Business Wire, 17 November 2000
  159. Telecom bid to buy STC New York Times, 9 November 1990
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  164. Thames to agree £4.3bn RWE takeover The Independent (London), 25 September 2000
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  166. 166.0 166.1 Normura will buy Thorn plc The Boston Globe, 1 July 1998
  167. C&W makes offer for Thus Reuters, 30 June 2008
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  170. Kvaerner Is Close to Bidding for Troubled Group: Lifeline for Trafalgar House? International Herald Tribune, 28 February 1996
  171. Lloyds Bank to merge with TSB Group New York Times, 12 October 1995
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  174. Swiss Bank in deal to buy S.G. Warburg New York Times, 11 May 1995
  175. Williams plunges 14% as margins shrink Independent, 19 July 2000
  176. 176.0 176.1 Willis: History
  177. Barclays buys rival Woolwich BBC News, 11 August 2000
  178. Lua error in package.lua at line 80: module 'strict' not found.
  179. The History Channel - Financial Times Index. Retrieved 8 August 2008
  180. Lua error in package.lua at line 80: module 'strict' not found.
  181. Remaining companies in the FT30
  182. Eckett, Stephen (ed.) (2004), The UK Stock Market Almanac 2005, Petersfield, Harriman House. ISBN 1-897597-46-0

External links

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