FTSE 100 Index

history

The FTSE 100 Index — also called FTSE 100, FTSE, or, informally, the "footsie" () — is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange. The index began on 3 January 1984 with a base level of 1000; the highest value reached to date is 6950.6, on 30 December 1999.

It is the most widely used of the FTSE Group's indices, and is frequently reported (e.g. on UK news bulletins) as a measure of business prosperity.

Overview

The index is maintained by the FTSE Group, an independent company 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.

FTSE 100 companies represent about 81% of the market capitalisation of the whole 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 lists 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. As of 30 September 2008, the net market capitalisation of FTSE 100 Index was £1,171 billion.

The constituents of the index are determined quarterly; the largest companies in the FTSE 250 Index are promoted if their market capitalisation would place them in the top ninety firms of the FTSE 100 Index. , the threshold for inclusion is about £1.7 billion. As of December 2008, the five largest constituents of the index were BP, HSBC Holdings, the Vodafone Group, GlaxoSmithKline, and Royal Dutch Shell which were each valued at more than £60 billion.

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 SETS, and meeting certain tests on nationality, free float, and liquidity.

With only historical exceptions, the companies listed on this index must by law include the abbreviation 'plc' at the end of their name, indicating their status of public limited company.

Trading lasts from 08.00–16.29 (when the closing auction starts), and closing values are taken at 16.35.

Weighting

They involve the total market capitalization of the companies weighted by their effect on the index, so the larger stocks would make more of a difference to the index as compared to a smaller market cap company. This is also called the free float method. The basic formula for any index is (be it capitalization weighted or any other stock index):

  • Index level= Σ(Price of stock* Number of shares)*Free float factor/ Index Divisor.

The Free float Adjustment factor represents the proportion of shares that is floated as a percentage of issued shares and then its rounded up to the nearest multiple of 5% for calculation purposes. To find the free-float capitalization of a company, first find its market cap (number of outstanding shares x share price) then multiply its free-float factor. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders.

Constituents

This reflects the quarterly review effective 22 March 2010, which saw Investec replace Resolution.

There are 100 companies in the index, but a total of 102 listings as two classes of shares are included for Royal Dutch Shell and Schroders.

  1. 3i
  2. Admiral Group
  3. Aggreko
  4. Alliance Trust
  5. AMEC
  6. Anglo American
  7. Antofagasta
  8. ARM Holdings
  9. Associated British Foods
  10. AstraZeneca
  11. Autonomy Corporation
  12. Aviva
  13. BAE Systems
  14. BG Group
  15. BHP Billiton
  16. BP
  17. BT Group
  18. Barclays
  19. British Airways
  20. British American Tobacco
  21. British Land Company
  22. British Sky Broadcasting Group
  23. Bunzl
  24. Burberry Group
  25. Cable & Wireless
  26. Cairn Energy
  27. Capita Group
  28. Carnival
  29. Centrica
  30. Cobham
  31. Compass Group
  32. Diageo
  33. Eurasian Natural Resources Corporation
  34. Experian
  35. Fresnillo
  36. G4S
  37. GlaxoSmithKline
  38. HSBC
  39. Hammerson
  40. Home Retail Group
  41. ICAP
  42. Imperial Tobacco
  43. Inmarsat
  44. InterContinental Hotels Group
  45. International Power
  46. Intertek Group
  47. Invensys
  48. Investec
  49. Johnson Matthey
  50. Kazakhmys
  51. Kingfisher
  52. Land Securities Group
  53. Legal & General
  54. Liberty International
  55. Lloyds Banking Group
  56. London Stock Exchange Group
  57. Lonmin
  58. Man Group
  59. Marks & Spencer
  60. Wm Morrison Supermarkets
  61. National Grid
  62. Next
  63. Old Mutual
  64. Pearson
  65. Petrofac
  66. Prudential
  67. RSA Insurance Group
  68. Randgold Resources
  69. Reckitt Benckiser
  70. Reed Elsevier
  71. Rexam
  72. Rio Tinto Group
  73. Rolls-Royce Group
  74. Royal Bank of Scotland Group
  75. Royal Dutch Shell
  76. SABMiller
  77. Sage Group
  78. J Sainsbury
  79. Schroders
  80. Scottish and Southern Energy
  81. SEGRO
  82. Serco Group
  83. Severn Trent
  84. Shire Pharmaceuticals Group
  85. Smith & Nephew
  86. Smiths Group
  87. Standard Chartered Bank
  88. Standard Life
  89. Tesco
  90. Thomas Cook Group
  91. TUI Travel
  92. Tullow Oil
  93. Unilever
  94. United Utilities
  95. Vedanta Resources
  96. Vodafone
  97. WPP Group
  98. Whitbread
  99. Wolseley
  100. Xstrata

Market capitalisation

The following table lists the 40 FTSE 100 companies which had a market capitalisation of £6 billion or more on the 3 October 2009.

{| class="wikitable sortable" border="1" |- !Rank||Company||Business type||Capitalisation (£m) |- | || ||(from stock exchange listing) || |- |1||HSBC||Financial (bank)||119,036 |- |2||Royal Dutch Shell||Energy (Oil/Gas)||107,824 |- |3||BP||Energy (Oil/Gas)||100,364 |- |4||Vodafone Group||Telecommunications (mobile)||72,739 |- |5||GlaxoSmithKline||Pharmaceuticals (inc. research)||63,224 |- |6||AstraZeneca||Pharmaceuticals (inc. research)||40,027 |- |7||Barclays Bank||Financial (bank)||39,351 |- |8||British American Tobacco||Tobacco||38,730 |- |9||Rio Tinto GroupRio Tinto Group is a dual listed company. The figure shown represents only the majority stake owned by Rio Tinto Plc.||Mining||38,174 |- |10||BHP BillitonBHP Billiton is a dual listed company. The figure represents only the minority stake owned by BHP Billiton Plc.||Mining||35,908 |- |11||BG Group||Energy (Oil/Gas)||35,576 |- |12||Tesco||Consumer goods/drinks||30,960 |- |13||Standard Chartered||Financial (bank)||29,728 |- |14||Royal Bank of Scotland||Financial (bank)||26,291 |- |15||Lloyds Banking Group||Financial (bank)||25,736 |- |16||Xstrata||Mining||25,033 |- |17||Anglo American||Mining||24,704 |- |18||Diageo||Consumer goods/drinks||23,873 |- |19||SABMiller||Consumer goods/drinks||23,845 |- |20||UnileverUnilever is a dual listed company. The figure represents only the minority stake owned by Unilever Plc.||Food production||22,756 |- |21||Reckitt Benckiser||Consumer goods/household||21,666 |- |22||Imperial Tobacco Group||Tobacco||18,387 |- |23||National Grid||Energy (distribution)||14,772 |- |24||Prudential||Financial (insurance)||14,483 |- |25||Centrica||Energy (consumer distribution)||12,753 |- |26||Aviva||Financial (insurance)||12,397 |- |27||BAE Systems||Aerospace and defence||11,786 |- |28||Cadbury Plc||Food production||10,996 |- |29||Scottish and Southern Energy||Energy (consumer distribution)||10,420 |- |30||ENRC||Mining||10,379 |- |31||BT Group||Telecommunications||9,961 |- |32||British Sky Broadcasting||Media (broadcasting)||9,886 |- |33||Tullow Oil||Energy (oil and gas)||8,957 |- |34||Rolls-Royce Plc||Aerospace and defence||8,360 |- |35||Morrisons||Consumer goods/food||7,307 |- |36||Antofagasta||Mining||7,098 |- |37||Compass Group||Travel and leisure||7,000 |- |38||Associated British Foods||Food production||6,618 |- |39||WPP Group||Media||6,594 |- |40||Pearson||Media||6,116 |}

Former members of the index

source:

FT 30

The oldest continuous index in the UK, the FT 30, also known as the Financial Times Index or the FT Ordinary Index (FTOI),The History Channel - »Financial Times Index. Retrieved 2008-08-08 which began in 1935 is now largely redundant. 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,»Original constituents two are currently in the FTSE 100: 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. A two further companies, Tate & Lyle and Guest Keen & Nettlefolds (GKN), are still listed but not in the FTSE 100. Two of the original FT 30 companies are still in that index:»Remaining companies in the FT30 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 line-up has been Imperial Tobacco.Eckett, Stephen (ed.) (2004), The UK Stock Market Almanac 2005, Petersfield, Harriman House. ISBN 1-897597-46-0

See also

  • FTSE 250 Index
  • FTSE techMARK 100
  • Stock market index
  • Dow Jones
  • DAX
  • AEX index
  • Top Track 100 Sunday Times list of the 100 largest private (non-listed) companies in the UK.
  • Top Track 250 Sunday Times list of the 250 mid-market (non-listed) companies in the UK.

References

External links

  • »FTSE Group website
  • [http://www.ftse.com/objects/csv_to_table.jsp?infoCode=100a&theseFilters=&csvAll=&theseColumns=Mw==&theseTitles=&tableTitle=FTSE%20100%20Index%20Constituents&p_encoded=1 FTSE100 Constituents Direct from FTSE Group website]
  • [http://uk.finance.yahoo.com/q/cp?s=%5EFTSE FTSE 100 Index] on Yahoo Finance

home | This article is licensed under the GNU Free Documentation License. See full license termsIt uses material from the Wikipedia article "FTSE_100_Index ". | compliance | March 22nd 2010