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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 27/02/2024
SHELL PLC Stock Shell plc8.72%
ASTRAZENECA PLC Stock AstraZeneca PLC8.04%
HSBC HOLDINGS PLC Stock HSBC Holdings plc6.35%
UNILEVER PLC Stock Unilever PLC4.89%
BP PLC Stock BP PLC3.99%
RIO TINTO PLC Stock Rio Tinto plc3.27%
DIAGEO PLC Stock Diageo plc3.24%
RELX PLC Stock RELX PLC3.03%
GSK PLC Stock GSK plc2.99%
GLENCORE PLC Stock Glencore plc2.98%
BRITISH AMERICAN TOBACCO P.L.C. Stock British American Tobacco p.l.c.2.62%
LONDON STOCK EXCHANGE PLC Stock London Stock Exchange plc2.15%
NATIONAL GRID PLC Stock National Grid plc1.99%
RECKITT BENCKISER GROUP PLC Stock Reckitt Benckiser Group plc1.99%
COMPASS GROUP PLC Stock Compass Group PLC1.88%
BAE SYSTEMS PLC Stock BAE Systems plc1.74%
LLOYDS BANKING GROUP PLC Stock Lloyds Banking Group plc1.55%
EXPERIAN PLC Stock Experian plc1.51%
ROLLS-ROYCE HOLDINGS PLC Stock Rolls-Royce Holdings plc1.29%
FLUTTER ENTERTAINMENT PLC Stock Flutter Entertainment plc1.26%
PRUDENTIAL PLC Stock Prudential plc1.25%
ASHTEAD GROUP PLC Stock Ashtead Group plc1.22%
ANGLO AMERICAN PLC Stock Anglo American plc1.22%
BARCLAYS PLC Stock Barclays PLC1.19%
3I GROUP PLC Stock 3i Group plc1.18%
TESCO PLC Stock Tesco PLC1.05%
SSE PLC Stock SSE plc1.04%
HALEON PLC Stock Haleon plc0.91%
IMPERIAL BRANDS PLC Stock Imperial Brands PLC0.83%
VODAFONE GROUP PLC Stock Vodafone Group Plc0.77%
LEGAL & GENERAL PLC Stock Legal & General Plc0.76%
STANDARD CHARTERED PLC Stock Standard Chartered PLC0.75%
NATWEST GROUP PLC Stock NatWest Group plc0.62%
SAGE GROUP PLC Stock Sage Group plc0.62%
AVIVA PLC Stock Aviva plc0.61%
INTERCONTINENTAL HOTELS GROUP PLC Stock Intercontinental Hotels Group PLC0.60%
SCOTTISH MORTGAGE INVESTMENT TRUST PLC Stock Scottish Mortgage Investment Trust Plc0.58%
RENTOKIL INITIAL PLC Stock Rentokil Initial plc0.57%
INFORMA PLC Stock Informa PLC0.56%
SEGRO PLC Stock SEGRO plc0.56%
BUNZL PLC Stock Bunzl plc0.55%
NEXT PLC Stock Next plc0.51%
SMITH & NEPHEW PLC Stock Smith & Nephew Plc0.48%
HALMA PLC Stock Halma plc0.44%
ADMIRAL GROUP PLC Stock Admiral Group plc0.42%
SMURFIT KAPPA GROUP PLC Stock Smurfit Kappa Group Plc0.42%
ASSOCIATED BRITISH FOODS PLC Stock Associated British Foods plc0.41%
WPP PLC Stock WPP plc0.40%
BT GROUP PLC Stock BT Group plc0.40%
SPIRAX-SARCO ENGINEERING PLC Stock Spirax-Sarco Engineering plc0.40%
CENTRICA PLC Stock Centrica plc0.40%
MELROSE INDUSTRIES PLC Stock Melrose Industries PLC0.39%
MONDI PLC Stock Mondi plc0.38%
UNITED UTILITIES GROUP PLC Stock United Utilities Group PLC0.37%
CRODA INTERNATIONAL PLC Stock Croda International Plc0.36%
WHITBREAD PLC Stock Whitbread PLC0.36%
PEARSON PLC Stock Pearson plc0.35%
INTERTEK GROUP PLC Stock Intertek Group plc0.35%
SEVERN TRENT PLC Stock Severn Trent Plc0.35%
AUTO TRADER GROUP PLC Stock Auto Trader Group plc0.33%
ENTAIN PLC Stock Entain plc0.32%
SMITHS GROUP PLC Stock Smiths Group plc0.32%
ANTOFAGASTA PLC Stock Antofagasta plc0.30%
INTERNATIONAL CONSOLIDATED AIRLINES GROUP, S.A. Stock International Consolidated Airlines Group, S.A.0.30%
DCC PLC Stock DCC plc0.29%
BARRATT DEVELOPMENTS PLC Stock Barratt Developments PLC0.28%
PERSHING SQUARE HOLDINGS, LTD. Stock Pershing Square Holdings, Ltd.0.28%
MARKS & SPENCER GROUP PLC Stock Marks & Spencer Group plc0.28%
J SAINSBURY PLC Stock J Sainsbury plc0.27%
B&M EUROPEAN VALUE RETAIL S.A. Stock B&M European Value Retail S.A.0.27%
LAND SECURITIES GROUP PLC Stock Land Securities Group Plc0.27%
TAYLOR WIMPEY PLC Stock Taylor Wimpey plc0.27%
BURBERRY GROUP PLC Stock Burberry Group plc0.26%
F&C INVESTMENT TRUST PLC Stock F&C Investment Trust PLC0.25%
THE BERKELEY GROUP HOLDINGS PLC Stock The Berkeley Group Holdings plc0.25%
THE WEIR GROUP PLC Stock The Weir Group PLC0.25%
M&G PLC Stock M&G plc0.25%
DIPLOMA PLC Stock Diploma PLC0.24%
INTERMEDIATE CAPITAL GROUP PLC Stock Intermediate Capital Group plc0.24%
RIGHTMOVE PLC Stock Rightmove plc0.24%
KINGFISHER PLC Stock Kingfisher plc0.24%
OCADO GROUP PLC Stock Ocado Group plc0.24%
COCA-COLA HELLENIC Stock Coca-Cola Hellenic0.23%
IMI PLC Stock IMI plc0.22%
HOWDEN JOINERY GROUP PLC Stock Howden Joinery Group Plc0.22%
JD SPORTS FASHION PLC Stock JD Sports Fashion Plc0.21%
CONVATEC GROUP PLC Stock ConvaTec Group Plc0.21%
DS SMITH PLC Stock DS Smith Plc0.20%
PHOENIX GROUP HOLDINGS PLC Stock Phoenix Group Holdings plc0.20%
RS GROUP PLC Stock RS Group plc0.20%
ST. JAMES'S PLACE PLC Stock St. James's Place plc0.19%
SCHRODERS PLC Stock Schroders plc0.19%
UNITE GROUP PLC Stock Unite Group plc0.19%
BEAZLEY PLC Stock Beazley plc0.18%
ENDEAVOUR MINING PLC Stock Endeavour Mining plc0.17%
HIKMA PHARMACEUTICALS PLC Stock Hikma Pharmaceuticals PLC0.15%
AIRTEL AFRICA PLC Stock Airtel Africa plc0.07%
FRASERS GROUP PLC Stock Frasers Group plc0.06%
FRESNILLO PLC Stock Fresnillo plc0.06%
EVRAZ PLC Stock EVRAZ plc-.--%

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