The FTSE 100 Index was launched on 3 January 1984. The market capitalisation weighted FTSE 100 index replaced the price-weighted FT30 Index as the performance benchmark for most investors.
The following chart shows the price performance of the FTSE 100 Index 1984-2013. A simple linear trendline has been added.
The trendline calculates a value of 6695 for the end of 2013, which is just 54 points away from the actual value (less than 1% difference). As can be seen in the chart, the FTSE 100 Index is pretty much bang on its long-term (since 1984) trend.
Fascinating Footsie Facts
|Number of companies in index||100|
|Market capitalisation, average (£m)||18,253|
|Market capitalisation, standard deviation||24,837|
|Share price, average (£)||12.93|
|Number of companies paying a dividend||96|
|Dividend yield, average (%)||2.92|
|Dividend yield, standard deviation||1.29|
|PE ratio, average||20.2|
|PE ratio, standard deviation||14.2|
|Turnover, average (£m)||14,674|
|Turnover growth last five years, average (%)||76.2|
|Turnover to capitalisation ratio, average||0.88|
|Number of companies making a profit||94|
|Profit, average (£m)||1,534|
|Profit growth last five years, average (%)||101.6|
|Profit / turnover, average (%)||16.9|
|Current ratio, average||1.29|
|Net cash, average (£m)||5838|
|Net cash, sum total (£m)||566,363|
|Price to net cash ratio, average||24.2|
|Net borrowings, average (£m)||-1710|
|Net borrowings, sum total (£m)||-165,902|
|Net gearing, average||1.00|
|Interest cover, average||70.0|
|ROCE, average (%)||50.1|
|ROCE, standard deviation||107.6|
The following table shows the 30 original companies that are still in the Index today. (The 19 italicised companies have been in the index continuously since launch.)
|Associated British Foods||ABF|
|British American Tobacco||BATS|
|Imperial Tobacco Group||IMT|
|Land Securities Group||LAND|
|Legal & General Group||LGEN|
|Lloyds Banking Group||LLOY|
|Marks & Spencer Group||MKS|
|Reckitt Benckiser Group||RB|
|RSA Insurance Group||RSA|
|Royal Dutch Shell||RDSA|
|Smith & Nephew||SN|
The following table compares the market capitalisations of the top five largest companies in the index in 1984 and today.
|Rank (1984)||Capital (£m)||Rank (2013)||Capital (£m)|
|1||British Petroleum Co.||7401||Royal Dutch Shell||140,695|
|2||Shell Trans. & Trad. Co.||6365||HSBC Holdings||124,728|
|3||General Electric Co.||4915||Vodafone Group||114,860|
|4||Imperial Chemical Industries||3917||BP||90,984|
|5||Marks & Spencer||2829||GlaxoSmithKline||78,252|
Oil is still there today, but industrial, chemical and retail stocks have been replaced by bank, telecom and pharmaceutical stocks.
In 1984 the total market capitalisation of the index was £100 billion; at the end of 2013 the market capitalisation had grown to £1,824 billion.
It’s interesting to note that Shell’s market cap. today is 40% larger than the whole FTSE 100 Index in 1984.
FTSE 100 at 30 article in the Telegraph by Martin Vander Weyer.