Understanding the UK 100 (FTSE 100)

Pepperstone
Market Analyst
11 Apr 2024
The UK 100 tracks the 100 largest companies listed on the LSE. While offering insights into prominent UK businesses, the index's focus on internationally-oriented companies might not fully reflect the UK's domestic economic performance.

UK 100

The UK 100 – also known as the FTSE 100, FTSE, Footsie, or more formally the Financial Times Stock Exchange 100 Index – is a market-cap weighted that tracks the share prices of the largest companies listed on the London Stock Exchange (LSE). Launched in the mid-1980s, it replaced the FT30 as the primary benchmark for UK company performance.

While the FTSE 100 includes the LSE's largest listed firms by market cap, these are primarily internationally-focused companies generating most of their revenue overseas. Hence, the UK 100 has developed a reputation for being a poor barometer of how the UK economy may be performing, while having also gained a close inverse correlation with the value of the GBP, since overseas revenues repatriated to GBP increase in value as the currency declines.

Stock market trading for the cash index occurs between 8:00 AM and 4:30 PM London time on all UK working days, with the close of trade followed by an auction, after which, at 4:35pm, the index’s closing value is published. Out of cash hours, the index trades via futures contracts, as well as both (Contracts for Difference) CFDs and spread bets derived from the aforementioned contract.

Stock indices like the FTSE 100 offer valuable insights into market movements. As the below shows, the UK 100 has significantly underperformed global peers of late, with the index’s value-heavy nature causing it to largely miss out on the AI- and tech-driven rally that has driven global equities substantially higher in recent years. As always, past performance is no reliable indicator of future results.

Preview

At the time of writing, the weightings of individual UK 100 constituents are as follows:

StockWeighting as of 01/07/2024
SHELL PLC Stock Shell plc9.01%
ASTRAZENECA PLC Stock AstraZeneca PLC8.64%
HSBC HOLDINGS PLC Stock HSBC Holdings plc6.44%
UNILEVER PLC Stock Unilever PLC4.98%
BP PLC Stock BP PLC4.21%
RIO TINTO PLC Stock Rio Tinto plc2.89%
DIAGEO PLC Stock Diageo plc2.97%
RELX PLC Stock RELX PLC3.03%
GSK PLC Stock GSK plc3.26%
GLENCORE PLC Stock Glencore plc2.75%
BRITISH AMERICAN TOBACCO P.L.C. Stock British American Tobacco p.l.c.2.29%
LONDON STOCK EXCHANGE PLC Stock London Stock Exchange plc2.28%
NATIONAL GRID PLC Stock National Grid plc1.89%
RECKITT BENCKISER GROUP PLC Stock Reckitt Benckiser Group plc1.48%
COMPASS GROUP PLC Stock Compass Group PLC1.85%
BAE SYSTEMS PLC Stock BAE Systems plc1.97%
LLOYDS BANKING GROUP PLC Stock Lloyds Banking Group plc1.59%
EXPERIAN PLC Stock Experian plc1.44%
ROLLS-ROYCE HOLDINGS PLC Stock Rolls-Royce Holdings plc1.68%
FLUTTER ENTERTAINMENT PLC Stock Flutter Entertainment plc1.27%
PRUDENTIAL PLC Stock Prudential plc0.94%
ASHTEAD GROUP PLC Stock Ashtead Group plc1.24%
ANGLO AMERICAN PLC Stock Anglo American plc1.54%
BARCLAYS PLC Stock Barclays PLC1.58%
3I GROUP PLC Stock 3i Group plc1.39%
TESCO PLC Stock Tesco PLC1.00%
SSE PLC Stock SSE plc0.97%
HALEON PLC Stock Haleon plc1.09%
IMPERIAL BRANDS PLC Stock Imperial Brands PLC0.78%
VODAFONE GROUP PLC Stock Vodafone Group Plc0.71%
LEGAL & GENERAL PLC Stock Legal & General Plc0.68%
STANDARD CHARTERED PLC Stock Standard Chartered PLC0.77%
NATWEST GROUP PLC Stock NatWest Group plc0.79%
SAGE GROUP PLC Stock Sage Group plc0.58%
AVIVA PLC Stock Aviva plc0.62%
INTERCONTINENTAL HOTELS GROUP PLC Stock Intercontinental Hotels Group PLC0.63%
SCOTTISH MORTGAGE INVESTMENT TRUST PLC Stock Scottish Mortgage Investment Trust Plc0.58%
RENTOKIL INITIAL PLC Stock Rentokil Initial plc0.50%
INFORMA PLC Stock Informa PLC0.53%
SEGRO PLC Stock SEGRO plc0.55%
BUNZL PLC Stock Bunzl plc0.50%
NEXT PLC Stock Next plc0.53%
SMITH & NEPHEW PLC Stock Smith & Nephew Plc0.41%
HALMA PLC Stock Halma plc0.41%
ADMIRAL GROUP PLC Stock Admiral Group plc0.40%
SMURFIT KAPPA GROUP PLC Stock Smurfit Kappa Group Plc0.44%
ASSOCIATED BRITISH FOODS PLC Stock Associated British Foods plc0.43%
WPP PLC Stock WPP plc0.41%

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