FTSE 100 Index

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The FTSE 100 Index — also called FTSE 100, FTSE, or, informally, the "footsie" (pronounced /ˈfʊtsiː/) — 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.

Contents

[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 30 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 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.

[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] Constituents

This reflects the quarterly review effective on 21 December 2009, which saw the replacement of Rentokil Initial with Aggreko.[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. 3i
  2. Admiral Group
  3. Aggreko
  4. Alliance Trust
  5. AMEC
  6. Anglo American
  7. Antofagasta
  8. Associated British Foods
  9. AstraZeneca
  10. Autonomy Corporation
  11. Aviva
  12. BAE Systems
  13. BG Group
  14. BHP Billiton
  15. BP
  16. BT Group
  17. Barclays
  18. British Airways
  19. British American Tobacco
  20. British Land Company
  21. British Sky Broadcasting Group
  22. Bunzl
  23. Burberry Group
  24. Cable & Wireless
  25. Cadbury
  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. Johnson Matthey
  49. Kazakhmys
  50. Kingfisher
  51. Land Securities Group
  52. Legal & General
  53. Liberty International
  54. Lloyds Banking Group
  55. London Stock Exchange Group
  56. Lonmin
  57. Man Group
  58. Marks & Spencer
  59. Wm Morrison Supermarkets
  60. National Grid
  61. Next
  62. Old Mutual
  63. Pearson
  64. Petrofac
  65. Prudential
  66. RSA Insurance Group
  67. Randgold Resources
  68. Reckitt Benckiser
  69. Reed Elsevier
  70. Resolution
  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

[edit] 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.

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 Group[4] Mining 38,174
10 BHP Billiton[5] 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 Unilever[6] 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

[edit] Former members of the index

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

[edit] FT 30

Main article: 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 December 2009". FTSE Group. 9 December 2009. http://www.ftse.com/tech_notices/2009/Q4/28359_20091209_FTSE_UK_Review_December_2009.jsp. Retrieved 2009-12-21. 
  4. ^ Rio Tinto Group is a dual listed company. The figure shown represents only the majority stake owned by Rio Tinto Plc.
  5. ^ BHP Billiton is a dual listed company. The figure represents only the minority stake owned by BHP Billiton Plc.
  6. ^ Unilever is a dual listed company. The figure represents only the minority stake owned by Unilever 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

v • d • e
FTSE 100 companies of the United Kingdom

As of 21 December 2009.

3i · Admiral Group · Aggreko · Alliance Trust · AMEC · Anglo American · Antofagasta · Associated British Foods · AstraZeneca · Autonomy Corporation · Aviva · BAE Systems · BG Group · BHP Billiton · BP · BT Group · Barclays · British Airways · British American Tobacco · British Land Company · British Sky Broadcasting · Bunzl · Burberry Group · Cable & Wireless · Cadbury · Cairn Energy · Capita Group · Carnival · Centrica · Cobham · Compass Group · Diageo · Eurasian Natural Resources Corporation · Experian · Fresnillo · G4S · GlaxoSmithKline · HSBC · Hammerson · Home Retail Group · ICAP · Imperial Tobacco · Inmarsat · InterContinental Hotels Group · International Power · Intertek Group · Invensys · Johnson Matthey · Kazakhmys · Kingfisher · Land Securities Group · Legal & General · Liberty International · Lloyds Banking Group · London Stock Exchange Group · Lonmin · Man Group · Marks & Spencer · Wm Morrison Supermarkets · National Grid · Next · Old Mutual · Pearson · Petrofac · Prudential · RSA Insurance Group · Randgold Resources · Reckitt Benckiser · Reed Elsevier · Resolution · Rexam · Rio Tinto Group · Rolls-Royce Group · Royal Bank of Scotland Group · Royal Dutch Shell · SABMiller · Sage Group · J Sainsbury · Schroders · Scottish and Southern Energy · SEGRO · Serco Group · Severn Trent · Shire · Smith & Nephew · Smiths Group · Standard Chartered Bank · Standard Life · Tesco · Thomas Cook Group · TUI Travel · Tullow Oil · Unilever · United Utilities · Vedanta Resources · Vodafone · WPP Group · Whitbread · Wolseley · Xstrata
v • d • e
Major United Kingdom stock market indices
v • d • e
United Kingdom Original companies of FT 30 in the United Kingdom
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