FTSE 30 Industrial Index

The Financial Times 30 Stock Index

The Financial Times 30 (FT30) Stock Index is a market capitalisation weighted stock index composed of 30 stocks from across a diverse range of sectors, including financials, energy, healthcare and industrials. The index was created by the London-based financial news organisation The Financial Times in June 1985 and is designed to provide a broad measure of UK stock market performance.

The FT30 index is a basket of 30 stocks drawn from the largest companies by market capitalisation on the London Stock Exchange. The companies included in the index are selected by the Financial Times on an ongoing basis and must meet certain liquidity, exclusivity and diversification criteria. At any one time, the FT30 can contain up to 25% of the top companies by market capitalisation on the London exchange.

The FT30 provides investors with a more accurate reflection of the UK’s economic performance than a single stock index. The stock index is calculated using the capitalisation-weighted style and this means that the larger the company, the more influence it has on the index return. For example, if a large company in the index has a significant increase in its stock value, then this will have a greater impact on the index than a small company who undergoes the same price increase in its stock.

The FT30 is calculated using real-time prices and is disseminated every 15 minutes on the London Stock Exchange, as well as on the Financial Times website. The index can also be viewed in historical data, with performance calculated back to 1985, when the index was first started.

The FT30, which first equalled a value of 1000 in June of 1985, has enjoyed considerable growth since then, reaching an all-time high of 7596.51 in May 2017. This indicates the success of the index in tracking the performance of the UK stock market over the past three decades.

The asset composition of the FT30 index can change over time as the criteria and market circumstances dictate. At June of 2018, the assets within the index were comprised of the following companies: Capita Group, London Stock Exchange Group, Royal Dutch Shell, Vodafone Group, HSBC Holdings, BP, Lloyds Banking Group, Unilever, Tesco, Intercontinental Exchange, Standard Chartered, GlaxoSmithKline, Reckitt Benckiser, Anglo American, Bae Systems, Bunzl, Compass Group, Edison International, GKN, ICAP, Imperial Tobacco, Johnson Matthey, National Grid, Next, Rio Tinto Group, Royal Bank of Scotland, Severn Trent, Standard Life Aberdeen, Tate & Lyle and Wolseley.

The FT30 Index is an important benchmark for investors, traders and financial professionals operating in the UK stock market. It provides a simple way to track the performance of the UK’s largest companies across various sectors. As the index is updated with real-time price data every 15 minutes, it provides a transparent and accurate view of the UK’s stock market performance. As such, it has become an essential tool for investors to measure their own performance against the broader stock market.

The Financial Times 30 (FT30) is an index of the 30 most important companies listed on the Financial Times Stock Exchange (FTSE). It was launched in 1984 as the FTSE 30. The index captures the performance of the largest companies on the London Stock Exchange, representing more than 80% of its market capitalisation.

The Financial Times 30 consists of corporations that are listed on the London Stock Exchange and are subject to regulatory review and disclosure rules. The selection process of the companies that make up the index is based on the criteria of liquidity, size and industry of the company. The stocks of the 30 companies generally correspond to the 30 most heavily traded companies, with the exception of any companies which are not regularly traded or have a significant influence on the index due to their size or sector.

The Financial Times 30 index is a price-weighted index and is calculated by summing the prices of the 30 stocks multiplied by the market capitalisation of each company. Each companys index position is determined by their market capitalisation, giving higher weight to larger companies. The FT30 is rebalanced every quarter and the composition of the index is reviewed by a committee which determines the changes to be made to the index based on numerous criteria.

The FT30 is a price index and not a total return index. The index values of the FT30 represent an estimate of the weighted average of the stock prices represented in the index at any given time. The index is typically taken as an indicator of the performance of the Financial Times listed industrial stocks over a given period of time, and is used as a benchmark to evaluate the performance of mutual funds and investment portfolios. As with any index, the FT30 can be subject to movements in market prices and should be used as a guide rather than a definitive measure of any one companys performance.