The FTSE 100 has been the UK’s financial heartbeat for over 36 years. The FTSE 100 was born in January 1984, ousting its predecessor, the FT 30, as the barometer for London Stock Exchange-listed companies. Let’s peel back the layers of one of the most widely used indices in Europe:
The UK FTSE 100 Index takes the stage as a European heavyweight. It compiles the 100 biggest companies listed on the London Stock Exchange (LSE). When it declines, it means that the top dogs of the UK economy have decreased in value, and vice versa.
Founded in January 1984 with a base level of 1,000, this index has since flexed its muscles, currently trading at well over 7,000. It moves according to the collective beat of its constituent companies’ total market capitalisation and the pulse of the index value.
With each trading day, the index value changes alongside the individual share prices, painting a dynamic picture of market sentiment. The FTSE 100 begins its day at 08:00 a.m and closes the curtains at 16:30 p.m. When it is announced whether it has been an up or down day, it is in comparison with the previous day’s closing market value.
What is the history of the UK FTSE 100 Index?
The FTSE Group, which manages FTSE 100, began as a collaborative venture between the Financial Times and the London Stock Exchange (LSE). Now, it’s entirely owned by the LSE.
From 1935 until the 1980s, the FT 30, or the FT Ordinary Index, was the oldest index in the UK, weighed by price. It’s now obsolete after being replaced by FTSE 100, which is weighed by market capitalisation.
Which FT 30 companies still remain in the FTSE 100?
Out of the original members of the FT 30, three companies remain in the FTSE 100: Imperial Tobacco, Tate & Lyle, and Rolls Royce.
What has been the FTSE 100’s highest price?
On 16 February 2023, the index closed at a staggering 8,012.53, with an impressive intra-day high of 8,047.06.
Is the FTSE 100 and the Footsie the same thing?
Yes, the Footsie is the catchy nickname for the Financial Times-Stock Exchange 100 Share Index (FTSE 100).
Much like its American counterparts, the Dow Jones Industrial
Average (DJIA) and the S&P 500, the FTSE 100 acts as a market barometer, reflecting the financial landscape of the entire country.
The Footsie’s stage is not confined to British actors alone – companies from around the world can join the index, provided they grace the London Stock Exchange’s listing.
What are the FTSE 100’s top 5 companies?
The FTSE 100’s current top five companies are AstraZeneca, Shell, HSBC, Unilever, and BP.
The FTSE universe extends beyond the FTSE 100, featuring indices like FTSE 250, FTSE 350, FTSE SmallCap, and FTSE All-Share. It also embraces smaller, up-and-coming firms with three indices dedicated to Alternative Investment Market (AIM) stocks, owned by the London Stock Exchange.
In the vibrant realm of global finance, the UK FTSE 100 Index stands tall, a mirror reflecting changing economic currents. From its inception in 1984 to its role as a steadfast market compass, the FTSE 100 leaves an indelible mark, an emblem of Britain’s financial dynamism.
