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British stock market index From Wikipedia, the free encyclopedia
The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" /ˈfʊtsi/, is the United Kingdom's best-known stock market index of the 100 most highly capitalised blue chips listed on the London Stock Exchange.[1]
 | |
_v1.jpg) Performance of the FTSE 100 index between January 1984 and June 2024 | |
| Foundation | 3 January 1984 |
|---|---|
| Operator | FTSE Russell |
| Exchanges | London Stock Exchange |
| Trading symbol |
|
| Constituents | 100 (June 2024) |
| Type | Large-cap |
| Market cap | £2.022 trillion (June 2024) |
| Weighting method | Capitalisation-weighted |
| Related indices | |
| Website | official website |
| Reuters | .FTSE |
| Bloomberg | UKX:IND |
Founded in 1984 by Stock Exchange to better reflect activity on the market, it replaced the Financial Times' own FT 30.[2] A new index allowed Stock Exchange to launch the options contract derived from the FTSE's real-time data, while competitors LIFFE launched the futures contract.[3][4] By 1986, Margaret Thatcher's sweeping financial deregulation and high profile privatisations of index members British Telecom, British Gas, and British Aerospace had culminated in the Big Bang.[5] The combination of a new index, major privatisations, LIFFE tradable derivatives, and promotion by the Financial Times led to the FTSE 100 becoming the most widely used indicator of whether the UK stock market was rising or falling.[6] In 1987, privatisations continued with British Airways and British Petroleum. The latter concluded on the same day as Black Monday, a crash in which the index fell 21.73% in two days; one of those days is still the index's worst single-day return, –12.22%.[7]
The index consists of 32 sectors, four of which had a market capitalisation exceeding £200 billion as of 28 June 2024[update]. These are pharmaceuticals, oil and gas, metals and mining and banking services, which together account for approximately 46% of the index's capitalisation.[8] On the same date, there were four companies with a market cap exceeding £100 billion: Shell, AstraZeneca, HSBC and Unilever, which together accounted for approximately 30% of the market cap.[8]
Each calendar quarter, the FTSE's constituents are reviewed and some companies exit or enter the index, resulting in irregular trading volume and price changes as market participants rebalance their portfolios.[9]
The index has trading symbol UKX[1] and is maintained by FTSE Russell,[10] a wholly owned subsidiary of London Stock Exchange Group, which originated as a joint venture between the Financial Times and the London Stock Exchange. It is calculated in real time and published every second when the market is open.
The FTSE 100 Index with its 100 constituents[10] was launched on 3 January 1984.[10][9] The market capitalisation weighted FTSE 100 index replaced the price-weighted FT30 Index as the performance benchmark for most investors.[11]
The FTSE 100 broadly consists of the largest 100 qualifying UK companies by full market value.[12] The total market value of a company is calculated by multiplying the share price of the company by the total number of shares they have issued.[13] However, many of these are internationally focused companies: therefore the index's movements are a fairly weak indicator of how the UK economy is faring and are significantly affected by the exchange rates of the pound sterling.[14] A better indication of the UK economy is the FTSE 250 Index, as it contains a smaller proportion of international companies.[15]
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 the FTSE Fledgling Index. The FTSE All-Share aggregates the FTSE 100, FTSE 250 and FTSE SmallCap.[1]
In the FTSE indices, share prices are weighted by free-float capitalisation, so that the larger companies, with more of their stock "floating", make more of a difference to the index than smaller companies. The basic formula for these indices is:[16]
The free float adjustment factor represents the percentage of all issued shares that are readily available for trading, rounded up to the nearest multiple of 5%. The free-float capitalisation of a company is its market capitalisation multiplied by its free float adjustment factor. It therefore does not include restricted stocks, such as those held by company insiders.[16]
FTSE futures contracts are traded on the Euronext Equities & Index Derivatives (EUREID) exchange. The value of each contract is 10 GBP × index points and is specified as:[17]
| Contract size | 10 GBP × index points |
|---|---|
| Exchange | EUREID |
| Sector | Index |
| Tick size | 0.5 |
| Tick value | 5 GBP |
| Basis Point Value | 10 |
| Denomination | GBP |
| Decimal places | 1 |
The index has reached the following record values:
| Category | All-time highs | |
|---|---|---|
| Closing | 8,445.80 | 15 May 2024 |
| Intraday | 8,474.71 | 15 May 2024 |
The index began on 3 January 1984 at the base level of 1,000.[18] The highest closing value of 8,445.80 was reached on 15 May 2024 and the highest intra-day value of 8,474.71 was also reached on 15 May 2024.[19]
The following table shows the annual development of the calculation of the FT 30 Index from 1969 to 1983, and the FTSE 100 since 1984.[20][21][22][23]
| Year | Closing level | Change in index | |
|---|---|---|---|
| (points) | (%) | ||
| 1969 | 313.16 | ||
| 1970 | 289.61 | −23.55 | −7.52 |
| 1971 | 411.03 | 121.42 | 41.93 |
| 1972 | 463.72 | 52.69 | 12.82 |
| 1973 | 318.30 | −145.42 | −31.36 |
| 1974 | 142.17 | −176.13 | −55.33 |
| 1975 | 335.98 | 193.81 | 136.32 |
| 1976 | 322.98 | −13.00 | −3.87 |
| 1977 | 455.96 | 132.98 | 41.17 |
| 1978 | 468.06 | 12.10 | 2.65 |
| 1979 | 488.40 | 20.34 | 4.35 |
| 1980 | 620.60 | 132.20 | 27.07 |
| 1981 | 665.50 | 44.90 | 7.23 |
| 1982 | 812.37 | 146.87 | 22.07 |
| 1983 | 1,000.00 | 187.63 | 23.10 |
| 1984 | 1,232.20 | 232.20 | 23.22 |
| 1985 | 1,412.60 | 180.40 | 14.64 |
| 1986 | 1,679.00 | 266.40 | 18.86 |
| 1987 | 1,712.70 | 33.70 | 2.01 |
| 1988 | 1,793.10 | 80.40 | 4.69 |
| 1989 | 2,422.70 | 629.60 | 35.11 |
| 1990 | 2,143.50 | −279.20 | −11.52 |
| 1991 | 2,493.10 | 349.60 | 16.31 |
| 1992 | 2,846.50 | 353.40 | 14.18 |
| 1993 | 3,418.40 | 571.90 | 20.09 |
| 1994 | 3,065.50 | −352.90 | −10.32 |
| 1995 | 3,689.30 | 623.80 | 20.35 |
| 1996 | 4,118.50 | 429.20 | 11.63 |
| 1997 | 5,135.50 | 1,017.00 | 24.69 |
| 1998 | 5,882.60 | 747.10 | 14.55 |
| 1999 | 6,930.20 | 1,047.60 | 17.81 |
| 2000 | 6,222.46 | −707.74 | −10.21 |
| 2001 | 5,217.35 | −1,005.11 | −16.15 |
| 2002 | 3,940.36 | −1,276.99 | −24.48 |
| 2003 | 4,476.87 | 536.49 | 13.62 |
| 2004 | 4,814.30 | 337.57 | 7.54 |
| 2005 | 5,618.76 | 804.46 | 16.71 |
| 2006 | 6,220.81 | 602.05 | 10.71 |
| 2007 | 6,456.91 | 236.10 | 3.80 |
| 2008 | 4,434.17 | −2,022.74 | −31.33 |
| 2009 | 5,412.88 | 978.71 | 22.07 |
| 2010 | 5,899.94 | 487.06 | 9.00 |
| 2011 | 5,572.28 | −327.66 | −5.55 |
| 2012 | 5,897.81 | 325.53 | 5.84 |
| 2013 | 6,749.09 | 851.29 | 14.43 |
| 2014 | 6,566.09 | −183.00 | −2.71 |
| 2015 | 6,274.05 | −292.04 | −4.45 |
| 2016 | 7,142.83 | 868.78 | 13.85 |
| 2017 | 7,687.77 | 544.94 | 7.63 |
| 2018 | 6,728.13 | −959.64 | −12.48 |
| 2019 | 7,542.44 | 814.31 | 12.10 |
| 2020 | 6,460.52 | −1,081.92 | −14.34 |
| 2021 | 7,384.54 | 924.02 | 14.30 |
| 2022 | 7,451.74 | 67.20 | 0.91 |
| 2023 | 7,733.24 | 281.50 | 3.78 |
The following table lists the FTSE 100 companies after the changes on 1 October 2024.[24]
| Company | Ticker | FTSE industry classification benchmark sector[25] |
|---|---|---|
| 3i | III | Financial services |
| Admiral Group | ADM | Insurance |
| Airtel Africa | AAF | Telecommunications services |
| Anglo American plc | AAL | Mining |
| Antofagasta plc | ANTO | Mining |
| Ashtead Group | AHT | Support services |
| Associated British Foods | ABF | Food & tobacco |
| AstraZeneca | AZN | Pharmaceuticals & biotechnology |
| Auto Trader Group | AUTO | Media |
| Aviva | AV | Life insurance |
| B&M | BME | Retailers |
| BAE Systems | BA | Aerospace & defence |
| Barclays | BARC | Banks |
| Barratt Redrow | BTRW | Household goods & home construction |
| Beazley | BEZ | Insurance |
| Berkeley Group Holdings | BKG | Household goods & home construction |
| BP | BP | Oil & gas producers |
| British American Tobacco | BATS | Tobacco |
| British Land | BLND | Real estate |
| BT Group | BT-A | Telecommunications services |
| Bunzl | BNZL | Support services |
| Centrica | CNA | Multiline utilities |
| Coca-Cola HBC | CCH | Beverages |
| Compass Group | CPG | Support services |
| Convatec | CTEC | Health care equipment & supplies |
| Croda International | CRDA | Chemicals |
| DCC plc | DCC | Support services |
| Diageo | DGE | Beverages |
| Diploma | DPLM | Industrial Support services |
| Endeavour Mining | EDV | Precious Metals and Mining |
| Entain | ENT | Travel & leisure |
| EasyJet | EZJ | Travel & leisure |
| Experian | EXPN | Support services |
| F & C Investment Trust | FCIT | Collective investments |
| Frasers Group | FRAS | Retailers |
| Fresnillo plc | FRES | Mining |
| Glencore | GLEN | Mining |
| GSK plc | GSK | Pharmaceuticals & biotechnology |
| Haleon | HLN | Pharmaceuticals & biotechnology |
| Halma plc | HLMA | Electronic equipment & parts |
| Hargreaves Lansdown | HL | Financial services |
| Hikma Pharmaceuticals | HIK | Pharmaceuticals & biotechnology |
| Hiscox | HSX | Non-life Insurance |
| Howdens Joinery | HWDN | Homebuilding & construction supplies |
| HSBC | HSBA | Banks |
| IHG Hotels & Resorts | IHG | Travel & leisure |
| IMI | IMI | Machinery, tools, heavy vehicles, trains & ships |
| Imperial Brands | IMB | Tobacco |
| Informa | INF | Media |
| Intermediate Capital Group | ICG | Financial services |
| International Airlines Group | IAG | Travel & leisure |
| Intertek | ITRK | Support services |
| JD Sports | JD | General retailers |
| Kingfisher plc | KGF | Retailers |
| Land Securities | LAND | Real estate investment trusts |
| Legal & General | LGEN | Life insurance |
| Lloyds Banking Group | LLOY | Banks |
| LondonMetric Property | LMP | Real Estate Investment Trusts |
| London Stock Exchange Group | LSEG | Financial services |
| M&G | MNG | Financial services |
| Marks & Spencer | MKS | Food & drug retailing |
| Melrose Industries | MRO | Aerospace & defence |
| Mondi | MNDI | Containers & packaging |
| National Grid plc | NG | Multiline utilities |
| NatWest Group | NWG | Banks |
| Next plc | NXT | General retailers |
| Pearson plc | PSON | Media |
| Pershing Square Holdings | PSH | Financial services |
| Persimmon | PSN | Household goods & home construction |
| Phoenix Group | PHNX | Life insurance |
| Prudential plc | PRU | Life insurance |
| Reckitt | RKT | Household goods & home construction |
| RELX | REL | Media |
| Rentokil Initial | RTO | Support services |
| Rightmove | RMV | Media |
| Rio Tinto | RIO | Mining |
| Rolls-Royce Holdings | RR | Aerospace & defence |
| Sage Group | SGE | Software & computer services |
| Sainsbury's | SBRY | Food & drug retailing |
| Schroders | SDR | Financial services |
| Scottish Mortgage Investment Trust | SMT | Collective investments |
| Segro | SGRO | Real estate investment trusts |
| Severn Trent | SVT | Multiline utilities |
| Shell plc | SHEL | Oil & gas producers |
| DS Smith | SMDS | General industrials |
| Smiths Group | SMIN | General industrials |
| Smith & Nephew | SN | Health care equipment & supplies |
| Spirax Group | SPX | Industrial engineering |
| SSE plc | SSE | Electrical utilities & independent power producers |
| Standard Chartered | STAN | Banks |
| Taylor Wimpey | TW | Household goods & home construction |
| Tesco | TSCO | Food & drug retailing |
| Unilever | ULVR | Personal goods |
| United Utilities | UU | Multiline utilities |
| Unite Group | UTG | Real estate investment trusts |
| Vistry Group | VTY | Home Construction |
| Vodafone Group | VOD | Mobile telecommunications |
| Weir Group | WEIR | Industrial goods and services |
| Whitbread | WTB | Retail hospitality |
| WPP plc | WPP | Media |
All changes are due to market capitalisation unless noted otherwise.
Source: "FTSE: FTSE 100 Constituent Changes" (PDF; 57.9 KB)
The oldest continuous index in the UK is the FT 30, also known as the Financial Times Index or the FT Ordinary Index (FTOI).[219] 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,[220] three are currently in the FTSE 100: 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, and is now renamed as Imperial Brands. Only one of the original FT 30 companies is still in that index:[221] 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.[222]
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