FTSE 100 Index

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The FTSE 100 Index — also called FTSE 100, FTSE (IPA: /ˈfʊtsiː/), 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.


[edit] 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 30th September 2008, the net market capitalisation of FTSE 100 Index was £1,171 billion.[1]

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. As of December 2008, 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 dominated 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.

[edit] 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):[2]

  • 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.

[edit] List of FTSE 100 companies

This reflects the quarterly reshuffle effective on 23 March 2009.[3]

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

[edit] Market capitalisation

The following table lists the 38 FTSE 100 companies which had a market capitalisation of £5 billion or more on 31 January 2009, the last trading day of January 2009.

Rank Company Business type Capitalisation (£m)
(from stock exchange listing)
1 Royal Dutch Shell Energy (Oil/Gas) 106,415
2 BP Energy (Oil/Gas) 93,177
3 Vodafone Group Telecommunications (mobile) 68,260
4 HSBC Financial (bank) 65,427
5 GlaxoSmithKline Pharmaceuticals (inc. research) 63,899
6 AstraZeneca Pharmaceuticals (inc. research) 38,980
7 British American Tobacco Tobacco 37,934
8 BG Group Energy (Oil/Gas) 32,024
9 Tesco Consumer goods/food 28,193
10 BHP Billiton[4] Mining 26,065
11 Diageo Consumer goods/drinks 23,777
12 Unilever[5] Food production 19,655
13 Imperial Tobacco Group Tobacco 19,246
14 Reckitt Benckiser Consumer goods/household 18,949
15 SABMiller Consumer goods/drinks 16,939
16 Anglo American Mining 16,787
17 Standard Chartered Financial (bank) 16,543
18 National Grid Energy (distribution) 15,861
19 Rio Tinto Group[6] Mining 15,082
18 Lloyds TSB Financial (bank) 14,825
19 BAE Systems Aerospace and defence 14,184
20 Centrica Energy (consumer distribution) 13,154
21 Scottish and Southern Energy Energy (consumer distribution) 11,407
22 Barclays Bank Financial (bank) 8,881
23 Royal Bank of Scotland Financial (bank) 8,730
24 British Sky Broadcasting Media (broadcasting) 8,712
25 Prudential Financial (insurance) 8,302
26 Aviva Financial (insurance) 8,290
27 British Energy Group Energy (electricity) 8,120
28 BT Group Telecommunications 8,112
29 Cadbury Plc Food production 7,594
30 Morrisons Consumer goods/food 7,266
31 Compass Group Travel and leisure 6,384
32 Rolls-Royce Plc Aerospace and defence 6,083
33 Sainsbury Consumer goods/food 5,784
34 Reed Elsevier Media 5,722
34 Shire Plc Pharmaceuticals (inc. research) 5,655
35 Xstrata Mining 5,534
36 Tullow Oil Energy (oil and gas) 5,524
37 Pearson Media 5,354
38 Associated British Foods Food production 5,251

Source: File linked from this page on the London Stock Exchange's official site. Companies which do not have their primary listing on the London Stock Exchange are not eligible for membership of the FTSE 100 Index and have been excluded.

[edit] Former members of the FTSE 100 index

source: FTSE: FTSE 100 Constituent ChangesPDF (57.9 KB)

[edit] 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),[7] 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,[8] 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:[9] 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.[10]

[edit] See also

[edit] References

  1. ^ http://www.ftse.com/Research_and_Publications/2008Downloads/ASWB_0908.pdfPDF (2.06 MB)
  2. ^ FTSE Capitlization method methodology via Wikinvest
  3. ^ "FTSE UK Index Series Quarterly Review March 2009". FTSE Group. 11 March 2009. http://www.ftse.com/tech_notices/2009/Q1/21110_20090311_FTSE_UK_Review_Mar_2009.jsp. Retrieved on 2009-03-21. 
  4. ^ BHP Billiton is a dual listed company. The figure represents only the minority stake owned by BHP Billiton Plc.
  5. ^ Unilever is a dual listed company. The figure represents only the minority stake owned by Unilever Plc.
  6. ^ Rio Tinto Group is a dual listed company. The figure shown represents only the majority stake owned by Rio Tinto Plc.
  7. ^ The History Channel - Financial Times Index. Retrieved 2008-08-08
  8. ^ Original constituents
  9. ^ Remaining companies in the FT30
  10. ^ Eckett, Stephen (ed.) (2004), The UK Stock Market Almanac 2005, Petersfield, Harriman House. ISBN 1-897597-46-0

[edit] External links

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