What is FTSE 100 Index?
The FTSE 100 index represents the share index of 100 largest public companies of UK trade on London Stock Exchange with the highest market capitalisation. The FTSE 100 index stands for Financial Times Stock Exchange 100 Index, and it is also known as Footsie. The FTSE Index was created in January 1984, maintained by FTSE Russell Group and owned by the London Stock Exchange.Summary
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Understanding FTSE 100 Index
The Financial Times Stock Exchange 100 Index (FTSE 100 index) refers to the share index of 100 blue chip companies of UK which are listed on London Stock Exchange with the highest market capitalisation. The FTSE is also known as FTSE Russell Group, which specialises in giving index offerings for the global financial markets. The FTSE 100 index is the good portent of the performance of the listed companies. Both the Financial Times and the London Stock Exchange has fifty-fifty ownership that is why it is called FTSE 100 and is now owned and maintained by the London Stock Exchange.
The FTSE 100 companies listed on London Stock Exchange are ranked on the basis of their market capitalisation. The total market capitalisation of a company changes with the shares price the company throughout the trading day. Therefore, index value also changes. The global financial markets use FTSE 100 index as a benchmark, which is unofficially called Footsie.
Frequently Asked Questions (FAQs)
What are the Top 5 companies of FTSE 100 Index?
These are the tops five companies of FTSE 100 index as of 01 January 2021 includes:
Founded in 1907, Royal Dutch Shell with its headquarters at Haagse Hout, The Hague,? Netherlands, is as oil and gas company. On 1 January 2021, the company recorded a market capitalisation of US$136.150 billion.
Founded in 1865, HSBC Holdings, with its headquarters in London, is an investment bank and financial services company with a global network of 3,900+ offices in 65 countries. On 1 January 2021, the company recorded a market capitalisation of US$105.160 billion.
Founded in 1929, Unilever, with its headquarters in London, is one of the largest FMCG company in the world. It has three main segments of products including beauty & personal care, home care, foods & refreshment. On 1 January 2021, the company recorded a market capitalisation of US$157.180 billion.
Founded in 1885, BHP Group, with its headquarters in Australia and London, the company is engaged in the business of metal, mining and petroleum. On 1 January 2021, the company recorded with the market capitalisation of US$165.000 billion.
Founded in 1999, AstraZenca Plc, with its base in Cambridge, is a pharmaceutical and biotechnology company. On 1 January 2021, the company recorded a market capitalisation of US$130.990 billion. The company is the one of the top 5 companies in the world, which collaborated with the University of Oxford in the advanced phase of Covid-19 testing and launched Phase III trials.
What factors affect the FTSE 100 index price
The FTSE 100 index get affected by government’s monetary policy, geopolitical factors, and other issues specific to the company, sector. The major factors can be summed up:
What is the significance of FTSE 100 index?
There are the several reasons that show the significance of FTSE 100 index:
How to calculate FTSE 100 index?
FTSE 100 index’s total market value is computed by multiplying the share price with the total number of shares issued by a company. The FTSE companies ranked on the basis of their market capitalisation.
The FTSE 100 index is computed by weighing all stocks listed on the LSE by market capitalisation. The FTSE 100 index companies have the highest market capitalisation that represents the higher weight in the index and stocks that have a high impact on the FTSE 100’s price. Trading hours of the FTSE 100 are 8 am to 4.30 pm (BST).