FTSE 100 Index

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The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation. 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.

Video FTSE 100 Index

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 second when the market is open.

The FTSE 100 broadly consists of the largest 100 qualifying UK companies by full market value. Many of these are internationally focused companies, however, so the index's movements are a fairly weak indicator of how the UK economy is faring - as seen with many of the recent swings corresponding to the value of sterling. A better indication of the UK economy is the FTSE 250, as it contains a smaller proportion of international companies.

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 the 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.

The constituent companies were criticised for their lack of diversity at the boardroom level in a 2014 study which found that more than half of them had no non-white board members, and two thirds did not have any executive directors from minorities.

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:

${\displaystyle {\text{Index level}}={\frac {\sum _{i}{\text{Price of stock}}_{i}\times {\text{Number of shares}}_{i}\times {\text{Free float adjustment factor}}_{i}}{\text{Index divisor}}}}$

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.

Maps FTSE 100 Index

Record values

The index reached the following record values:

The index began on 3 January 1984 at the base level of 1000. The highest closing value of 7,687.77 was reached on 29 December 2017 and the highest intra-day value of 7,697.62 was reached on 29 December 2017. The previous peaks were over 17 years previously, on the last trading day of 1999, during the dot-com bubble, and in April 2015, when the Index reached 7103.98. After falling during the financial crisis of 2007-2010 to below 3500 in March 2009, the index recovered and reached its record high just before its close at 12.30pm on 29 December 2017.

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Constituents in December 2017

The following table lists the FTSE 100 companies after the changes on 15 December 2017. 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.

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Past constituents

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

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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). 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, 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: 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.

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See also

Other lists

• List of largest companies by revenue, worldwide
• List of corporate collapses and scandals, on major bankruptcies historically and worldwide
• List of largest United Kingdom employers, including the public sector
• List of private equity firms
• List of largest private companies in the United Kingdom
• List of hedge funds

Stock market lists

• List of stock market indices
• Financial Times Global 500, the BBC Global 30 and the Fortune Global 500, list the world's largest corporations by market capitalisation
• FTSE 250 and FTSE techMARK 100, a longer FT list, and one for the "new economy"
• Dow Jones and the DAX 30, equivalent to the FT 30 in the US and Germany
• S&P 100 and the HDAX, top 100 in the US and top 110 in Germany
• AEX index

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Notes

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External links

• Reuters page for .FTSE
• FTSE Group website
• FTSE100 Constituents Direct from FTSE Group website
• FTSE 100 Index on Yahoo Finance
• FTSE 100 profile on Wikinvest
• Bloomberg page for UKX:IND
• Historical Constituents of FTSE 100
• FTSE 100 Index overview (invuk100)

Source of the article : Wikipedia