- Also known as the footsie, the FTSE 100 is also dubbed as the key indicator of the UK economy.
- Typically, investors look for blue-chip companies to gain market exposure.
The FTSE 100 index or footsie constitutes the top 100 companies that trade on the London Stock Exchange. The companies are listed based on their market capitalisation, meaning that the most valued companies make it to the index. These companies are also called blue-chip companies; therefore, the FTSE 100 is known as the blue-chip index or benchmark index.
Since the FTSE 100 indicates the performance of its constituents, is also dubbed as the key indicator of the UK economy.
Notably, investors look for blue-chip companies to gain more exposure to the market. The country is going through economic challenges at present, and the situation is projected to aggravate further. The Bank of England has already projected of recession setting in later this year. In such cases, investors prefer blue-chip companies more likely to hold up during economic headwinds.
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The FTSE 100 index includes energy, mining, financial, and tobacco companies. Let us look at the top 10 FTSE 100-listed stocks that investors can look at.
AstraZeneca Plc (LON: AZN)
The global biopharma giant is currently the top constituent of the FTSE 100 index, with a market cap of £176,083.97 million at present. Its shares were down 1.58% and traded at GBX 11,184.00 as of 9:43 am GMT+1 on Tuesday. Over the past year, the stock has provided investors with a return of over 30%, and its YTD return stands at over 28%. The stock's earnings per share (EPS) is 0.08.
Shell Plc (LON: SHEL)
The British multinational oil and gas producing giant has a market cap of £169,960.02 million, and its shares were trading 1.22% higher at GBX 2,362.50 as of 9:53 am GMT+1 on Tuesday. The company has reported bumper profits in the previous quarters due to the soaring global oil prices. In the last year, the stock price has appreciated by over 62%, and the YTD return is over 45%.
HSBC Holdings plc (LON: HSBA)
Leading bank in UK and Europe, HSBC Holding plc, boasts of a market cap of £104,432.66 million. It has given shareholders a return of over 35% in the past year, and its EPS stands at 0.62. HSBA’s shares was trading at GBX 534.30, up 2.16% as of 10:00 am GMT+1 on 30 August 2021.
Unilever Plc (LON: ULVR)
Unilever is among the world's largest FMCG firms, with over 400 brands under its portfolio. In the first half of 2022, its underlying sales grew 8.1% over the same period in 2021. With a market cap of £100,158.49 million, the stock has provided negative returns of nearly 2% over the past 12 months. Its EPS currently stands at 2.33, and the shares were trading at GBX 3,970.50, up 0.90% as of 10:16 am GMT+1.
Diageo Plc (LON: DGE)
With operations in over 80 nations, Diageo produces and sells alcoholic beverages, owning more than 200 brands. Over the past year, the company's share value has jumped by nearly 10%. With a market cap of £87,148.26 million, the stock was trading 0.21% higher at GBX 3,833.50 as of 10:21 am GMT+1 on 30 August.
BP plc (LON: BP.)
Shares of the oil and gas 'supermajor' were down 0.37% at GBX 456.10 as of 10:45 am GMT+1 on 30 August. The company has seen high profits this year due to the rising global oil and gas prices. The stock has a market cap of £86,288.26 million and has given returns of 51.16% to investors over the past year. The YTD return currently stands at 38.25%, while the EPS is 0.38.
Rio Tinto plc (LON: RIO)
The Anglo-Australian mining firm, Rio Tinto plc, holds a market cap of £62,219.24 million. On a year-to-date basis, the stock has appreciated marginally by 0.15%, while the 12-month return currently stands in the negative territory at -9.45%. The stock has an EPS of 13.03, and it was trading at GBX 4,904.50, down 1.52% as of 11:17 am GMT+1.
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British American Tobacco plc (LON: BATS)
BATS is a leading tobacco firm in the UK, and it currently has a market cap of £77,918.47 million. The stock has provided investors with a return of nearly 30% in past 12 months and 27.68% on a YTD basis. Shares of British American Tobacco were trading at GBX 3,490.50, up 0.81% as of 10:43 am GMT+1 on Tuesday.
Glencore plc (LON: GLEN)
Glencore Plc boasts of a market cap of £60,370.48 million and has offered returns of 46.18% to its investors in the past 12 months. The YTD return of this commodity trading and mining firm stands at 29.66%, while the EPS currently stands at 0.38. As of 10:54 am GMT+1 on Tuesday, the stock was trading at GBX 486.15, down 2.56%.
GSK Plc (LON: GSK)
The British pharma business recently demerged its consumer healthcare business into a separate entity, Haleon. GSK currently has a market cap of £56,731.44 million, and its EPS stands at 1.10. Over the past year, the share value has depreciated by over 5%, while the YTD return is -13.06%. Shares of GSK were trading 0.16% higher at GBX 1,396.60 as of 11:02 am GMT+1 on Tuesday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.