FTSE 100 Index

FTSE 100 Index
FTSE 100 Index performance between 1984 and 2015
Foundation1984[1]
OperatorFTSE Group[1]
ExchangesLondon Stock Exchange[1]
Constituents101[1]
TypeLarge cap
Market cap£1.904 trillion
(as of March 2015)[1]
Weighting
method
Capitalization-weighted[1]
Related 
indices
Website

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. FTSE stands for Financial Times Stock Exchange.

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 during the dot-com bubble.[3][4] 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.[5]

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.[6] 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.[7] 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.[8]

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:[9]


\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.[10][11] 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 SectorMarket cap (£bn)Employees
Aberdeen Asset Management ADN Fund management4.91,800
Admiral Group ADM Insurance3.42,500
Aggreko AGK Generator hire4.64,262
AMEC AMEC Consulting3.329,000
Anglo American plc AAL Mining26100,000
Antofagasta ANTO Mining10.74,005
ARM Holdings ARM Engineering132,000
Associated British Foods ABF Food14102,000
AstraZeneca AZN Pharmaceuticals3857,200
Aviva AV Insurance10.440,800
Babcock International BAB Consulting3.925,000
BAE Systems BA Military11.8107,000
Barclays BARC Banking37150,000
BG Group BG Oil and gas496,625
BHP Billiton BLT Mining4446,370
BP BP Oil and gas8597,700
British American Tobacco BTI Tobacco6987,813
British Land Co BLND Property5.1177
BSkyB BSY Media1422,800
BT Group BT.A Telecomms2089,000
Bunzl BNZL Industrial products4.312,368
Burberry Group BRBY Fashion6.19,000
Capita CPI Support Services5.946,500
Carnival plc CUK Leisure4.686,800
Centrica CNA Energy1840,000
Coca-Cola HBC AG CCH Consumer5.638,312
Compass Group CPG Food15471,108
CRH plc CRH Building materials10.976,433
Croda International CRDA Chemicals3.53,200
Diageo DGE Beverages5025,000
Eurasian Natural Resources ENRC Mining4.372,000
Evraz EVR Mining3.5110,000
Experian EXPN Information11.717,000
Fresnillo plc FRES Mining10.82,449
G4S GFS Security4.1657,125
GKN GKN Manufacturing4.440,000
GlaxoSmithKline GSK Pharmaceuticals7397,389
Glencore International GLEN Mining2757,656
Hammerson HMSO Property3.7277
Hargreaves Lansdown HL Finance4.1650
HSBC HSBA Banking129267,000
IMI plc IMI Engineering3.914,700
Imperial Tobacco Group ITY Tobacco2438,200
InterContinental Hotels Group IHG Hotels5.7345,000
International Consolidated Airlines Group SA IAG Transport air4.558,476
Intertek Group ITRK Product testing5.533,000
ITV plc ITV Media4.84,059
J Sainsbury plc SBRY Supermarket6.5150,000
Johnson Matthey JMAT Chemicals4.99,700
Kingfisher plc KGF Retail homeware6.780,000
Land Securities Group LAND Property6.6700
Legal & General LGEN Insurance9.59,324
Lloyds Banking Group LLOY Banking36120,449
Marks & Spencer Group MKS Retailer5.981,223
Meggitt MGGT Engineering3.67,370
Melrose plc MRO Engineering3.210,000
Morrison Supermarkets MRW Supermarket6.5132,000
National Grid plc NG Energy2627,000
Next plc NXT Retail clothing6.958,706
Old Mutual OML Insurance10.254,368
Pearson plc PSO Education9.637,000
Petrofac PFC Oil and gas5.118,200
Prudential plc PRU Finance2525,414
Randgold Resources RRS Mining4.96,954
Reckitt Benckiser RB Consumer goods3232,000
Reed Elsevier REL Publishing8.930,200
Friends Life Group FLG Investment3.740
Rexam REX Packaging4.119,000
Rio Tinto Group RIO Mining4867,930
Rolls-Royce Group RR Manufacturing1955,500
Royal Bank of Scotland Group RBS Banking18150,000
Royal Dutch Shell RDSA Oil and gas13590,000
RSA Insurance Group RSA Insurance4.221,000
SABMiller SAB Beverages5370,000
Sage Group SGE IT4.312,300
Schroders SDR Fund management5.53,012
Serco SRP Outsourced services3.1100,000
Severn Trent SVT Water3.88,051
Shire plc SHPG Pharmaceuticals11.74,200
Smith & Nephew SNN Medical6.411,000
Smiths Group SMIN Engineering5.023,550
SSE plc SSE Energy1320,000
Standard CharteredSTANBanking4386,865
Standard Life SL Fund management8.810,500
Tate & Lyle TATE Food3.95,616
Tesco TSCO Supermarket29519,671
TUI Travel TT Leisure3.553,000
Tullow Oil TLW Oil and gas11.2890
Unilever ULVR Consumer goods34171,000
United Utilities UU Water5.05,096
Vedanta Resources VED Mining1.232,000
Vodafone Group VOD Telecomms8386,373
Weir Group WEIR Engineering5.014,000
Whitbread WTB Retail hospitality4.586,800
Wolseley plc WOS Building materials9.144,000
Wood Group WG Oil and gas0.841,000
WPP plc WPP Media13162,000
Xstrata XTA Mining3538,561

Current constituents

The current constituents following the changes of 13 April 2015 are as follows:[12]

Past constituents

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

FT 30

Main article: FT 30

The oldest continuous index in the UK is the FT 30, also known as the Financial Times Index or the FT Ordinary Index (FTOI).[176] 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,[177] 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:[178] 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.[179]

See also

Other lists
Stock market lists

Notes

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External links