FTSE 100 index, often also called FTSE 100 Index, FTSE, some also call it Footsie. It is a stock index of 100 companies listed on the London Stock Exchange. The FTSE 100 index represents the 100 companies that represent the highest market capitalization.
Like other stock indices, the FTSE is widely used to track companies that have the highest market capitalization. Mainly in terms of analysis and investment. The index value rises and falls along with changes in the average share value of the companies listed in the index. The FTSE 100 is a major index that is also traded on global CFD exchanges.
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What is the FTSE 100 Index?
The FTSE 100 index was launched on January 3, 1984, as a joint venture between the Financial Times and LSE (London Stock Exchange). It is published in real-time every second after the market opens.
The FTSE 100 has replaced the function of the FT 30 index. It is a weighted index of market capitalization that investors use to track performance.
The FTSE 100 index consists of 100 companies that have qualified as companies that have full market value. While it does not provide accurate tracking of the UK economy. It is widely traded on exchanges. To track the UK economy. Investors usually prefer to look at the FTSE 250 which is a stock index of 250 companies after the FTSE 100.
What does FTSE stand for?
FTSE 100 stands for Financial Times Stock Exchange 100 Index. The FTSE 100 is operated by the FTSE group. As of April 2022, it has a market capitalization of £1.996 trillion. The FTSE group was founded by Pearson, owner of the London-based Financial Times newspaper.
In 1995 he sold to hold on the London Stock Exchange which is also his own. Then turn acquired the index provided by Frank Russel 2014 which then combined the FTSE group to form FTSE Russel.
Not only FTSE 100, but FTSE Russell also operates several other indices. Such as FTSE 250, FTSE All-Share, FTSE MIB, and FTSEurofirst. Fixed income index FTSE MTS and FTSE TMX, and FTSE4Good.
How does FTSE 100 index work?
FTSE 100 is calculated based on the market capitalization of the company’s floating shares by calculating the stock price formula, the number of shares, and the free float adjusting factor divided by the index divisor.
Companies that have free float stock get more priority to be included in the FTSE 100 index list. The free float adjusting factor here represents the percentage of shares issued and ready to be traded in rounds multiplied by the value of 5%. The company’s market capitalization is reviewed quarterly and the index will be adjusted if necessary.
Why is the FTSE 100 index important?
The FTSE 100 index represents the stock performance of `100 companies with the largest capitalization. Investors or fund managers use the FTSE 100 index to track the shares of companies with the highest possible gains.
Since there are thousands of company stocks traded on exchanges, it can be not very clear to find blue-chip stocks that perform well.
The FTSE 100 can be used as a benchmark for selecting a company’s stock by tracking the index value. Which then finds the stock that is considered the best to buy.
However, nowadays many CFD brokers also provide access to indices trading. Thus allowing investors to invest in FTSE 100 through CFD brokers. However, this requires knowledge of CFD trading which is a high-risk investment.
Is FTSC 100 index a good investment?
The growth of the FTSE 100 is expected to grow 4.1% in 2022, in the long term the next 5-10 years, the FTSE 100 can be a good investment.
When looking at historical data for the past year. The lowest FTSE 100 value is around the level of 6,844 in June 2021, with a high level of the 7,642 price area in February 2022.
Image Yahoo Finance
The FTSE 100 index which represents the 100 companies with the largest capitalization is one of the fundamental weights for the long term. However, the current economic turmoil engulfing the global economy makes little doubt about the future of the FTSE 100 index. Rising inflation, the war between Russia and Ukraine, and rising interest rates are problems in themselves that make some fund managers doubt.
What is the highest the FTSE 100 has been?
The FTSE 100 index is currently monitored at 7,168.65 based on data from Investing dot com, the all-time high was reached on May 22, 2018, at 7877.45. While the lowest value of the FTSE 100 was at the level of 5.593 which was formed on October 1, 2020.
Image source Investing
The decline occurred in 2020 globally, many countries are struggling in the midst of a pandemic that has had a widespread impact on many companies.
FTSE 100 index companies
The following is a list of 100 companies in the FTSE 100 index based on the LSE data table.
Constituent companies FTSE 100 Index July 2022
- ASTRAZENECA PLC ORD SHS $0.25. Code: AZN market cap: 167,342.83 Million.
- SHELL PLC ORD EUR0.07 COde: SHEL market cap: 157,126.45 Million.
- HSBC HLDGS PLC ORD $0.50 (UK REG) Code: HSBA market cap: 107,394.22 million.
- UNILEVER PLC ORD 3 1/9P Code: ULVR market cap: 94,913.74 million.
- GSK PLC ORD 25P code: GSK market cap: 89,763.96 million.
- DIAGEO PLC ORD 28 101/108P Code: DGE market cap: 80,545.31 muillion.
- BRITISH AMERICAN TOBACCO PLC ORD 25P Code: BATS market cap: 79,477.19 million.
- BP PLC $0.25 Code: BP market cap: 74,450.69 million.
- RIO TINTO PLC ORD 10P Code: RIO market cap: 61,421.34 million.
- GLENCORE PLC ORD USD0.01 Code: GLEN market cap: 58,383.27 million.
- RECKITT BENCKISER GROUP PLC ORD 10P Code: RKT market cap: 44,140.09 million.
- RELX PLC ORD 14 51/116P code: REL market cap: 42,803.25 million.
- ANGLO AMERICAN PLC ORD USD0.54945 Code: AAL market cap: 39,284.66million.
- LONDON STOCK EXCHANGE GROUP PLC ORD SHS 6 79/86P Code: LSEG market cap: 38,695.99 million.
- NATIONAL GRID PLC ORD 12 204/473P Code: NG market cap: 38,363.63 million.
- VODAFONE GROUP PLC ORD USD0.20 20/21 Code: VOD market cap: 35,556.55 million.
- COMPASS GROUP PLC ORD 11 1/20P Code: CPG market cap: 29,823.21 million.
- LLOYDS BANKING GROUP PLC ORD 10P Code: LLOY market cap: 29,208.33 million.
- PRUDENTIAL PLC ORD 5P Code: PRU market cap 27,932.96 million.
- BAE SYSTEMS PLC ORD 2.5P Code: BA market cap 26,201.27 million.
- BARCLAYS PLC ORD 25P Code: BARC market cap: 25,328.84 million.
- NATWEST GROUP PLC ORD 100P COde: NWG market cap: 22,813.39 million.
- EXPERIAN PLC ORD USD0.10 COde: EXPN market cap: 22,160.01 million.
- CRH PLC ORD EUR 0.32 (CDI) Code: CRH market cap: 21,462.18 million.
- TESCO PLC ORD 6 1/3P COde: TSCO market cap:19,190.15 million.
- BT GROUP PLC ORD 5P Code: BTA market cap: 18,495.04 million.
- STANDARD CHARTERED PLC ORD USD0.50 Code: STAN market cap: 18,358.96 million.
- IMPERIAL BRANDS PLC ORD 10P COde: IMB market cap: 17,449.49 million.
- SSE PLC ORD 50P Code: SSE market cap: 17,253.67 million.
- ASHTEAD GROUP PLC ORD 10P COde: AHT market cap: 15,200.94 million.
- FLUTTER ENTERTAINMENT PLC ORD EUR0.09 Code: FLTR market cap: 14,493.89 million.
- LEGAL & GENERAL GROUP PLC ORD 2 1/2P COde: LGEN market cap: 14,299.43 million.
- ASSOCIATED BRITISH FOODS PLC ORD 5 15/22P COde: ABF market cap: 12,492.62 million.
- SEGRO PLC ORD 10P COde: SGRO market cap: 11,802.35 million.
- ANTOFAGASTA PLC ORD 5P Code: ANTO market cap:11,386.64 million.
- AVIVA PLC ORD 32 17/19P Code: AV market cap: 11,246.56 million.
- 3I GROUP PLC ORD 73 19/22P Code:III market cap: 10,788.44 million..
- SCOTTISH MORTGAGE INV TST PLC ORD 5P Code: SMT market cap: 10,310.41 million.
- SMITH & NEPHEW PLC ORD USD0.20 Code: NV market cap: 10,011.45 million.
- BUNZL PLC ORD 32 1/7P Code: BNZL market cap: 9,177.85 million.
- CRODA INTERNATIONAL PLC ORD 10.609756P Code: CRDA market cap: 9,037.21 million.
- WPP PLC ORD 10P Code: WPP market cap: 9,005.23 million.
- RENTOKIL INITIAL PLC ORD 1P Code: RTO market cap: 8,845.75 million.
- INTERCONTINENTAL HOTELS GROUP PLC ORD 20 340/399P Code: IHG market cap: 8,004.71 million.
- INFORMA PLC ORD 0.1P Code: INF market cap: 7,708.81 million.
- HALMA PLC ORD 10P Code: HLMA market cap: 7,627.07 million.
- NEXT PLC ORD 10P Code: NXT market cap: 7,613.06 million.
- ENTAIN PLC ORD EUR0.01 Code: ENT market cap: 7,324.48 millon.
- SPIRAX-SARCO ENGINEERING PLC ORD 26 12/13 COde: SPX market cap: 7,286.61 million.
- SMURFIT KAPPA GROUP PLC ORD EUR0.001 Code: SKG market cap: 7,171.37 million.
- MONDI PLC ORD EUR 0.20 COde; MNDI market cap: 7,064.81 million.
- UNITED UTILITIES GROUP PLC ORD 5P Code: UU market cap: 6,955.26 million.
- ROLLS-ROYCE HOLDINGS PLC ORD SHS 20P Code: RR market cap: 6,940.92 million.
- SEVERN TRENT PLC ORD 97 17/19P COde: SVT market cap: 6,828.73 million.
- AVEVA GROUP PLC ORD 3 5/9P COde; AVV market cap: 6,789.55 million.
- INTERTEK GROUP PLC ORD 1P Code; ITRK market cap: 6,788.19 million.
- ADMIRAL GROUP PLC ORD 0.1P Code: ADM market cap: 6,729.61 million.
- COCA-COLA HBC AG ORD CHF6.70 (CDI) Code: CCH market cap: 6,676.21 million.
- BURBERRY GROUP PLC ORD 0.05P Code: BRBY market cap: 6,548.51 million.
- SAGE GROUP PLC ORD 1 4/77P COde: SGE market cap: 6,466.60 million.
- OCADO GROUP PLC ORD 2P Code; OCDO market cap: 6,442.97 million.
- MELROSE INDUSTRIES PLC ORDS 160/21P Code: MRO market cap: 6,416.24 million.
- MEGGITT PLC ORD 5P Code:MGGT market cap: 6,176.94 million.
- SCHRODERS PLC VTG SHS £1 Code: SDR market cap: 6,039.32 million.
- ST.JAMES’S PLACE PLC ORD 15P Code: STJ market cap: 5,993.81 million.
- JD SPORTS FASHION PLC ORD 0.05P Code: JD market cap: 5,952.49 million.
- PERSIMMON PLC ORD 10P Code; PSN market cap:5,950.15 million.
- PHOENIX GROUP HOLDINGS PLC ORD 10P COde: PHNX market cap: 5,901.89 million.
- FRESNILLO PLC ORD USD0.50 Code: FREZ market cap: 5,650.50 million.
- PEARSON PLC ORD 25P Code; PSON market cap: 5,544.16 million.
- AVAST PLC ORD 10P COde: AVST market cap: 5,384.08 million.
- INTL CONSOLIDATED AIRLINES GROUP SA ORD COde: IARG market cap: 5,329.65 million.
- AUTO TRADER GROUP PLC ORD 1P Code: AUTO market cap: 5,234.34 million.
- SMITHS GROUP PLC ORD 37.5P Code; SMIN market cap: 5,183.69 million.
- AIRTEL AFRICA PLC ORD USD0.50 Code; AAF market cap: 5,081.02 million.
- DCC PLC ORD EUR0.25 (CDI) Code: DCC market cap: 5,031.31 million.
- WHITBREAD PLC ORD 76 122/153P Code: WTB market cap: 5,006.13 million.
- LAND SECURITIES GROUP PLC ORD 10 2/3P Code: LAND market cap: 4,988.84 million.
- M&G PLC ORD £0.05 Code: MNG market cap: 4,982.34 million
- PERSHING SQUARE HOLDINGS LTD ORD NPV COde: PSH market cap: 2,465.00 million.
- KINGFISHER PLC ORD 15 5/7P COde: KGF market cap: 4,867.09 million
- SAINSBURY(J) PLC ORD 28 4/7P Code: SBRY market cap: 4,780.85 million.
- RIGHTMOVE PLC ORD 0.1P Code: RMV market cap: 4,759.94 million.
- CENTRICA PLC ORD 6 14/81P Code: CNA market cap: 4,726.03 million.
- BARRATT DEVELOPMENTS PLC ORD 10P Code: BDEV market cap: 4,677.19 million.
- UNITE GROUP PLC ORD 25P Code: UTG market cap: 4,256.86 million.
- ENDEAVOUR MINING PLC ORD USD0.01 Code: EDV market cap: 4,228.37 million.
- BRITISH LAND CO PLC ORD 25P Code: BLND market cap: 4,143.95 million.
- BERKELEY GROUP HOLDINGS (THE) PLC ORD 5. Code: BKG market cap: 4,132.53 million.
- TAYLOR WIMPEY PLC ORD 1P Code: TW market cap: 4,120.06 million.
- RS GROUP PLC ORD 10P Code; RS1 market cap: 4,093.26 million.
- SMITH (DS) PLC ORD 10P Code: SMDS market cap: 3,816.21 million.
- INTERMEDIATE CAPITAL GROUP PLC Code: ICP market cap: 3,803.33 million.
- DECHRA PHARMACEUTICALS PLC Code: DPH market cap: 3,748.11 million.
- HARGREAVES LANSDOWN PLC Code: HL market cap: 3,736.68 million.
- B&M EUROPEAN VALUE RETAIL S.A Code: BME market cap: 3,671.50 million.
- HIKMA PHARMACEUTICALS PLC Code: HIK market cap: 3,560.33 million.
- ABRDN PLC Code: ABDN market cap; 3,485.89 million.
- HOWDEN JOINERY GROUP PLC Code: HWDN market cap: 3,424.77 million.
- HARBOUR ENERGY PLC Code: HBR market cap: 3,332.93 million.
All currency-based GBX, source LSE.
FTSE 100 index analysis
UK stocks ended slightly lower on July 1, 2022 trading. The decline had extended losses for a third straight day, with the benchmark FTSE 100 index on the London Stock Exchange shedding 0.01 percent, or 0.63 points, to settle at 7,168. ,65 points.
The FTSE 100 index fell 1.96 percent, or 143.04 points, to 7,169.28 points on June 30, 2022, after slumping 0.15 percent, or 11.09 points, to 7,312.32 the previous day.
The price of the NTSE 100 index is currently below the middle band and above the MA period 9, with a candle pattern forming a pin bar.
The low target is 6926 the support zone based on the lower band line, and the high target is 7634 the resistance zone from the daily timeframe. Sell signals are still dominating from the technical pattern with the RSI level 39, with the line above the SMA indicating a possible increase in the price.
Final thought
The FTSE 100 index is a benchmark for the 100 companies with the largest market capitalization in the UK. That it is not possible to buy FTSE directly but investors can buy it through ETH (Exchange Trade Fund) through a broker that provides ETF trading facilities.
Note: this article is for information only, forex, and crypto CFD is a risky trades. Each investor is responsible for their investment.
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