FTSE 100

The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest market capitalisation. The index is maintained by the FTSE Group, a subsidiary of the London Stock Exchange Group.

Overview

The index is maintained by the FTSE Group, now a wholly owned subsidiary of the London Stock Exchange, 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 was launched on 3 January 1984. The market capitalisation weighted FTSE 100 index replaced the price-weighted FT30 Index as the performance benchmark for most investors.

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

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.

To be included in the index, a company 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 the Stock Exchange Electronic Trading Service, and meeting certain tests on nationality, free float, and liquidity.

Continuous trading on the London Stock Exchange starts at 08:00 and ends at 16:30 (when the closing auction starts), and closing values are taken at 16:35.

Weighting

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:

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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.

Futures contracts

FTSE futures contracts are traded on the Euronext Equities & Index Derivatives (EUREID) exchange. The value of each contract is 10 GBP x Index Points and is specified as:

Record values

The index has reached the following record values:

The index began on 3 January 1984 at the base level of 1000. The highest closing value of 7,877.45 was reached on 22 May 2018. The highest intra-day value of 7,903.50 was reached on 22 May 2018.

Annual returns

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.

Constituents in December 2022

The following table lists the FTSE 100 companies after the changes on 16 December 2022.

Past constituents

All changes are due to market capitalisation unless noted otherwise.

* Abbey Life (became subsidiary of Lloyds TSB in 1996, then sold to Deutsche Bank in 2007)
* Abbey National (acquired by Banco Santander Central Hispano, now part of its Santander UK subsidiary)
* Aberdeen Asset Management
* African Barrick Gold
* Aggreko
* Alliance & Leicester (acquired by Banco Santander Central Hispano, now part of its Santander UK subsidiary)
* Alliance Boots (acquired by private equity fund controlled by Kohlberg Kravis Roberts)
* Alliance Trust
* Allied Domecq (acquired by Pernod Ricard)
* Allied Zurich (dual holding company along with Zurich Allied, companies unified in 2000 to form Zurich Financial Services)
* Amec
* Amersham (acquired by GE, now part of its GE Healthcare division)
* Amstrad (acquired by British Sky Broadcasting)
* Argos (acquired by GUS)
* Argyll Group (renamed Safeway in 1996, then taken over by Morrisons in 2004)
* Arjo Wiggins Appleton (acquired by Worms & Cie)
* ARM Holdings (acquired by SoftBank Group)
* ASDA Group (acquired by Wal-Mart)
* Avast (acquired by NortonLifeLock)
* BAA (acquired by Ferrovial)
* Babcock International
* Balfour Beatty
* Baltimore Technologies (acquired by Oryx International Growth Fund)
* Bank of Scotland (merged with Halifax to form HBOS, now part of the Lloyds Banking Group)
* Bass (became Six Continents and then InterContinental Hotels Group)
* Beecham Group (merged with SmithKline and then with Glaxo to become GlaxoSmithKline)
* Berisford (renamed Enodis, subsequently acquired by The Manitowoc Company)
* BET, formerly British Electric Traction (acquired by Rentokil)
* BG Group (acquired by Royal Dutch Shell)
* BHP (moved main stock listing to the Australian Securities Exchange)
* BICC (renamed Balfour Beatty)
* Blue Arrow (acquired by Corporate Services Group)
* Blue Circle Industries (acquired by Lafarge)
* BOC (acquired by Linde)
* Bowater (renamed Rexam)
* Bookham Technology (renamed Oclaro and now traded on Nasdaq)
* BPB Industries (acquired by Saint-Gobain)
* Bradford & Bingley (branch network acquired by Banco Santander Central Hispano, now part of its Santander UK subsidiary; loans book nationalised)
* Brambles Industries (now only listed on the Australian Securities Exchange)
* British Aerospace (merged with Marconi Electronic Systems to form BAE Systems)
* British Airways (merged with Iberia to form International Airlines Group)
* British Home Stores (acquired by Storehouse and then sold to Philip Green)
* British Steel (merged with Koninklijke Hoogovens to become Corus Group, now Tata Steel Europe)
* British & Commonwealth (collapsed in 1990)
* Britoil