FTSE 100 Index (FTSE)

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Clusterstock  7 hrs ago  Comment 
LONDON — Britain's benchmark share index, the FTSE 100, slipped into negative territory for the year on Monday, meaning it now stands below where it ended 2016. The FTSE 100 went on an unmatched run at the end of 2016 and beginning of 2017,...
MarketWatch  8 hrs ago  Comment 
U.K. stocks fall Monday, losing ground while the British pound strengthens, as investors digest Donald Trump’s protectionist tone at his inauguration as the 45th president of the United States.
newratings.com  Jan 20  Comment 
VIENNA (dpa-AFX) - U.K. shares were little changed in early trade Friday, as investors looked ahead to Donald Trump's inauguration as U.S. President, and a government report showed that U.K. retail sales fell at the fastest pace in almost...
MarketWatch  Jan 20  Comment 
U.K. stocks look set to drop for the week, with investors set to watch what Donald Trump may say about his plans for the U.S. economy when he’s sworn in as the country’s 45th president.
MarketWatch  Jan 19  Comment 
Stocks in the U.K. closed down Thursday, with housing shares lower after a lackluster industry update, while Royal Mail shares struggle following a trading update.
MarketWatch  Jan 18  Comment 
FTSE recovering in spite of crash in Pearson shares
guardian.co.uk  Jan 18  Comment 
Fewer people are in work and wage growth has slowed, latest figures show Britain’s labour market showed signs of slowing in November as the number of people in work declined and wage growth slowed for the first time since August. The number of...
guardian.co.uk  Jan 18  Comment 
Education giant plans sale of stake in Penguin Random House to Bertelsmann as it cuts payout to shareholders Almost £2bn was wiped from the stock market value of Pearson after the beleaguered FTSE 100 company issued profit warnings for the next...
MarketWatch  Jan 18  Comment 
U.K. stocks are recovering some ground after blue-chips suffered their worst loss in six months in the previous session.
Mondo Visione  Jan 17  Comment 
FTSE China A Innovative Enterprise Indexes track fast-growing ChiNext stocks listed on Shenzhen Stock Exchange FTSE China A Stock Connect Index tracking China mainland listed stocks available through the Shanghai- Hong Kong and Shenzhen-Hong...




 
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Also called the footsie, the Financial Times Stock Exchange 100 is a market capitalization weighted index representing the top 100 blue chip companies on the London Stock Exchange. The index is said to map more than 80% of the total capitalization in the United Kingdom. Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index. [1]. The FTSE group manages the Index, which in turn is a joint venture between the Financial Times and the London Stock Exchange.

Weighting and Calculations

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 freefloated as a percentage of issued shares and then its rounded up to the nearest mulitple 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.

While one might track this portfolio’s value in dollar terms, it would probably be an unwieldy number – for example, the S&P 500 market value is roughly $11.8 trillion. Rather than deal with ten or more digits, the figure is scaled to a more easily handled number, currently around 1250. Dividing the portfolio market value by a factor, usually called the Index divisor, does the scaling.

Continuity in index values is maintained by adjusting the divisor for all changes in the constituents’ share capital after the base date. This includes additions and deletions to the index, rights issues, share buybacks and issuances, and spin-offs. The divisor’s time series is, in effect, a chronological summary of all changes affecting the base capital of the index. The divisor is adjusted such that the index value at an instant just prior to a change in base capital equals the index value at an instant immediately following that change[3].

Composition of the FTSE 100

The List of companies that comprise the FTSE as of 16th September 2011[4]

  1. AB Foods
  2. Admiral Group
  3. Aggreko
  4. AMEC
  5. Anglo American (AAUK)
  6. Antofagasta (ANTO-LN)
  7. ARM Holdings
  8. Associated British Foods
  9. AstraZeneca plc (AZN-LN)
  10. Autonomy Corporation
  11. Aviva
  12. BAE Systems (BAESY)
  13. BG Group PLC (BRGYY)
  14. BHP Billiton (BHP)
  15. BP (BP)
  16. BT GROUP (BT)
  17. Barclays (BCS)
  18. British American Tobacco Industries (BTI)
  19. British Land Company
  20. British Sky Broadcasting Group (BSY)
  21. Burberry Group
  22. Cairn Energy
  23. Capita Group
  24. Capital Shopping Centres Group
  25. Carnival (CCL)
  26. Centrica
  27. Compass Group
  28. Diageo (DEO)
  29. Essar Energy
  30. Eurasian Natural Resources Corporation
  31. Experian PLC (EXPN-LN)
  32. Fresnillo
  33. G4S
  34. GKN
  35. GlaxoSmithKline (GSK)
  36. Glencore International
  37. HSBC Holdings (HBC)
  38. Hammerson
  39. Hargreaves Lansdown
  40. ICAP
  41. IMI
  42. Imperial Tobacco Group (ITY)
  43. Inmarsat
  44. International Consolidated Airlines Group
  45. Intercontinental Hotels Group (IHG)
  46. International Power (IPR)
  47. ITV
  48. Intertek Group
  49. Investec
  50. Johnson Matthey (JMAT)
  51. Kazakhmys (KAZ-LN)
  52. Kingfisher
  53. Land Securities
  54. Legal & General
  55. Lloyds Banking Group
  56. Lonmin
  57. Man Group
  58. Marks & Spencer
  59. Morrisons
  60. National Grid Transco (NGG)
  61. Next
  62. Old Mutual PLC (OML-LN)
  63. Pearson (PSO)
  64. Petrofac
  65. Prudential Financial (PRU)
  66. RSA Insurance Group
  67. Rangold
  68. Reckitt Benckiser
  69. Reed Elsevier (RUK)
  70. Resolution
  71. Rexam (REXMY)
  72. Rio Tinto (RTP)
  73. Rolls-Royce Holdings
  74. Royal Bank of Scotland Group
  75. Royal Dutch Shell (RDS'A)
  76. SABMiller plc (SBMRY)
  77. Sage Group
  78. Sainsbury
  79. Schroders
  80. Scottish and Southern Energy
  81. Serco Group
  82. Severn Trent
  83. Shire Pharmaceuticals Group
  84. Smith & Nephew
  85. Smiths Group
  86. Standard Chartered PLC (STAN-LN)
  87. Standard Life
  88. Tate & Lyle
  89. Tesco (TESO)
  90. Tullow Oil
  91. Unilever (UL)
  92. United Utilities (UU)
  93. Vedanta Resources
  94. Vodafone AirTouch Public Limited Company (VOD)
  95. WPP Group (WPPGY)
  96. Weir Group
  97. Whitbread
  98. Wolseley PLC (WOS-LN)
  99. Wood Group
  100. Xstrata PLC (XTA-LN)

References

  1. FTSE Factsheet
  2. Capitlization method methodology
  3. Capitalization Weighted Description
  4. [1]
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