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FTSE 100 Index (FTSE)

QUOTE AND NEWS
Informa's Springer talks anger shareholders
Financial Times  Nov 27  Comment 
The board of Informa has come under sharp criticism from some of its leading shareholders following news that the publisher is in talks to acquire German rival Springer Science and Business Media
FTSE ends week on steadier footing after Dubai dip
guardian.co.uk  Nov 27  Comment 
The FTSE 100 wobbled at the open but managed to put its Dubai dip behind it and shake off sharp losses on Wall Street on Friday to finish in positive territory as miners and travel companies rose. Traders took Thursday's steep fall in the FTSE...
Banks lead rebound
Business Times - Malaysia  Nov 27  Comment 
LONDON: European shares closed higher yesterday, with banks leading a rebound after reversing earlier sharp losses driven by a shock debt announcement in Dubai that alarmed markets worldwide. The pan-European FTSEurofirst 300 index of top...
European markets drop in early trade; FTSE 100 index down 1.5%
MarketWatch  Nov 27  Comment 
European markets drop in early trade; FTSE 100 index down 1.5%
European shares move off early lows
MarketWatch  Nov 27  Comment 
Dubai: Storms in the Gulf
guardian.co.uk  Nov 27  Comment 
It is not often that a terse statement from a small faraway country sends the share market into shock. But yesterday afternoon the FTSE 100 suffered its biggest one-day loss since March; and it was largely thanks to a notice about Dubai World, the...
U.K. shares resume trading, FTSE 100 down 1.8%
MarketWatch  Nov 26  Comment 
British shares resumed trading on Thursday afternoon, with the FTSE 100 index down 1.8% at 5,265.81. Trading was halted during the morning due to technical issues. Banks were the biggest drag on the index, with HSBC Holdings down 4.3% and...
Share trading on London Stock Exchange frozen
Reuters  Nov 26  Comment 
Shares slip further
Business Times - Malaysia  Nov 26  Comment 
European shares lower in early trading
MarketWatch  Nov 26  Comment 
London Stock Exchange Glitch Halts FTSE 100 Trading
Bloomberg  Nov 26  Comment 
(Update1) London Stock Exchange Group Plc, Europe’s oldest independent bourse, said technical problems mean all FTSE 100 and “order-driven” shares have been placed in an auction period, meaning trades won’t be executed.
Dubai fears weigh on FTSE 100
Times Online  Nov 26  Comment 
Biggest daily fall for FTSE since March on Dubai and LSE woes
guardian.co.uk  Nov 26  Comment 
Leading index suffers biggest fall since March as trading restarts
guardian.co.uk  Nov 26  Comment 
Water shares buoyant after Ofwat ruling
guardian.co.uk  Nov 26  Comment 
The share price reaction tells you all you need to know about Ofwat's final determination on pricing. Water companies are rising in a falling market. In the FTSE 100 Severn Trent is up 38p to £10.44 and United Utilities is 11.5p better at...
Footsie has biggest daily fall for eight months
Financial Times  Nov 26  Comment 
Dubai's attempt to reschedule debt led investors to dump riskier investments
Gains all round
Business Times - Malaysia  Nov 25  Comment 
LONDON: European stocks closed higher yesterday with pharmaceuticals among the best performers, after a choppy day's trading as investors digested a raft of US macro-economic data ahead of the Thanksgiving Day holiday. The FTSEurofirst 300...
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 This article describes an index that measures the performance of an exchange, industry or a geographic region. View articles referencing this index.
 
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Sr. Director
Advait Pandey


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 October 2008[4]

  1. 3i
  2. Admiral Group
  3. Alliance Trust
  4. AMEC
  5. Anglo American (AAUK)
  6. Antofagasta (ANTO-LN)
  7. Associated British Foods
  8. AstraZeneca plc (AZN-LN)
  9. Autonomy Corporation
  10. Aviva
  11. BAE Systems (BAESY)
  12. BG Group PLC (BRGYY)
  13. BHP Billiton (BHP)
  14. BP (BP)
  15. BT GROUP (BT)
  16. Barclays (BCS)
  17. British Airways ADR (BAIRY)
  18. British American Tobacco Industries (BTI)
  19. British Energy (BGY-LN)
  20. British Land
  21. British Sky Broadcasting Group (BSY)
  22. Bunzl (BNL)
  23. Cable & Wireless
  24. Cadbury Schweppes (CSG)
  25. Cairn Energy
  26. Capita Group
  27. Carnival (CCL)
  28. Centrica
  29. Cobham
  30. Compass Group
  31. Diageo (DEO)
  32. Drax Group
  33. Eurasian Natural Resources Corporation
  34. Experian PLC (EXPN-LN)
  35. Firstgroup PLC (FGP-LN)
  36. Fresnillo
  37. Friends Provident
  38. G4S
  39. GlaxoSmithKline (GSK)
  40. Heritage Financial Group (HBOS)
  41. HSBC Holdings (HBC)
  42. Hammerson
  43. ICAP
  44. Imperial Tobacco Group (ITY)
  45. Inmarsat
  46. Intercontinental Hotels Group (IHG)
  47. International Power (IPR)
  48. Invensys
  49. Johnson Matthey (JMAT)
  50. Kazakhmys (KAZ-LN)
  51. Kingfisher
  52. Land Securities
  53. Legal & General
  54. Liberty International
  55. Lloyds Tsb Group (LYG)
  56. London Stock Exchange Group PLC (LSE-LN)
  57. Lonmin
  58. Man Group
  59. Marks & Spencer
  60. Morrisons
  61. National Grid Transco (NGG)
  62. Next
  63. Old Mutual PLC (OML-LN)
  64. Pearson (PSO)
  65. Petrofac
  66. Prudential Financial (PRU)
  67. RSA Insurance Group
  68. Reckitt Benckiser
  69. Reed Elsevier (RUK)
  70. Rexam (REXMY)
  71. Rio Tinto (RTP)
  72. Rolls Royce
  73. Royal Bank of Scotland
  74. Royal Dutch Shell (RDS'A)
  75. SABMiller plc (SBMRY)
  76. Sage Group
  77. Sainsbury
  78. Schroders
  79. Scottish and Southern Energy
  80. Severn Trent
  81. Shire Pharmaceuticals Group
  82. Smith & Nephew
  83. Smiths Group
  84. Stagecoach Group
  85. Standard Chartered PLC (STAN-LN)
  86. Standard Life
  87. Tesco (TESO)
  88. Thomas Cook
  89. Thomson Reuters Corporation (TRI)
  90. TUI Travel
  91. Tullow Oil
  92. Unilever (UL)
  93. United Utilities (UU)
  94. Vedanta Resources
  95. Vodafone AirTouch Public Limited Company (VOD)
  96. WPP Group (WPPGY)
  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. ↑ FTSE 100 index companies
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