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FTSE 100 Index

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FTSE 100
Performance of the FTSE 100 index between January 1984 and June 2024
Foundation3 January 1984
OperatorFTSE Russell
ExchangesLondon Stock Exchange
Trading symbol
  • UKX
Constituents100 (June 2024)
TypeLarge-cap
Market cap£2.022 trillion (June 2024)
Weighting methodCapitalisation-weighted
Related indices
Websiteofficial website
Reuters.FTSE
BloombergUKX:IND

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]

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%.[5]

The index consists of 32 sectors, four of which had a market capitalisation exceeding £200 billion as of 28 June 2024. These are pharmaceuticals, oil and gas, metals and mining and banking services, which together account for approximately 46% of the index's capitalisation.[7] 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.[7]

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.[8]

Overview

[edit]

The index has trading symbol UKX[1] and is maintained by FTSE Russell,[9] 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[9] was launched on 3 January 1984.[9][8] The market capitalisation weighted FTSE 100 index replaced the price-weighted FT30 Index as the performance benchmark for most investors.[10]

The FTSE 100 broadly consists of the largest 100 qualifying UK companies by full market value.[11] 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.[12] 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.[13] A better indication of the UK economy is the FTSE 250 Index, as it contains a smaller proportion of international companies.[14]

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]

Weighting

[edit]

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:[15]

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.[15]

Futures contracts

[edit]

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:[16]

FTSE (QFA) contract specifications
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

Record values

[edit]

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.[17] 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.[18]

Annual returns

[edit]

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.[19][20][21][22]

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

Constituents

[edit]

The following table lists the FTSE 100 companies after the changes on 23 December 2024.[23]

Company Ticker FTSE industry classification benchmark sector[24]
3i III Financial services
Admiral Group ADM Insurance
Airtel Africa AAF Telecommunications services
Alliance Witan ALW Investment Trusts
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
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
Fresnillo plc FRES Mining
Games Workshop GAW Leisure Goods
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
St. James's Place STJ Financial services
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
Vodafone Group VOD Mobile telecommunications
Weir Group WEIR Industrial goods and services
Whitbread WTB Retail hospitality
WPP WPP Media

Past constituents

[edit]

All changes are due to market capitalisation unless noted otherwise.

Source: "FTSE: FTSE 100 Constituent Changes" (PDF; 57.9 KB)

FT 30

[edit]

The oldest continuous index in the UK is the FT 30, also known as the Financial Times Index or the FT Ordinary Index (FTOI).[218] 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,[219] 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:[220] 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.[221]

See also

[edit]
Other lists
Stock market lists

References

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Sources

[edit]
  • Michie, Ranald C. (1999), The London Stock Exchange: A History, New York: Oxford University Press Inc., ISBN 978-0-199-24255-9
  • Kynaston, David (1997), LIFFE: A Market and its Makers, Cambridge: Granta Editions, ISBN 1-85757-056-1


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