FTSE All Share Index: The UK’s Market Barometer

The FTSE All-Share Index, formerly known as the FTSE Actuaries All-Share Index, includes roughly 1,000 of the more than 2,000 companies traded on the London Stock Exchange (LSE) and is weighted by market capitalisation.

The FTSE All-Share Index includes the FTSE 250 Index, FTSE SmallCap Index, and FTSE 100 Index to create a more inclusive representation. Its goal is to represent at least 98% of the total capitalisation of all UK companies that meet the eligibility requirements, providing a broad representation of the UK market.

With a base date of April 10, 1962, and an initial base level of 100, the FTSE All-Share Index has a long-standing history. To be eligible for this Index, a company should have a full listing on the London Stock Exchange’s Main Market, be denominated in Sterling, and trade on either the SETS or SETSmm trading systems. In some cases, securities with firm quotations on SEAQ may also be considered.

Investors primarily focus on funds that track the FTSE All-Share Index, which holds a significant share of London stock market pricing, despite the Index screening companies for minimum size and liquidity requirements.

In August of last year, the FTSE 100 demoted Persimmon after its operating income fell by 65%, from £152.2m in H1 2022 to £152.2m in H1 2023. During the same time frame, 4,249 new homes were completed, a 36% decrease.

But by then, interest rates had jumped from a record-low of 0.1% in December 2021 to 5.25%. Mortgage rates had gone up as well, hitting a 16-year high. Additionally, the Help to Buy housing purchase program expired on March 31.

It is now anticipated that interest rates will continue to decline, bringing mortgage rates down with them.

According to the FTSE live chart, the FTSE today stands at 4,549, a 0.31% increase compared to yesterday’s trading.

FTSE All Share Index Info

Prev. Close: 4,536.49
Open: 4,536.49
1-Year Change: 14.45%
Volume: 10,097,870
Average Vol. (3m): 129,759,708
Day’s Range: 4,535.13-4,552.88
52 wk Range: 3,926.69-4,607.46
Net MCap: 2,458,341
Dividend Yield (%): 3.58

Comprising more than 600 listed companies with a combined market capitalisation of approximately £2 trillion, the Index is an amalgamation of 3 London Stock Exchange indices: the FTSE SmallCap Indices, the FTSE 250, and the FTSE 100.

A company listed on the FTSE All-Share Index has an average market capitalisation of £3.14 billion; the smallest market capitalisation is £30 million, and the largest is £88 billion. The largest listing in the Index weighs 4.4%, and the average dividend for a firm on the Index is 3.73%. This Index’s top 10 companies include many well-known brands:

British American Tobacco
HSBC Holdings
GlaxoSmithKline
BP
Royal Dutch Shell A
Vodafone Group
Royal Dutch Shell B
Diageo
AstraZeneca
Lloyds Banking Group

These top ten businesses collectively comprise 32.13% of the Index’s weight. The Index includes well-known businesses like Tesco, Stagecoach, Persimmon, Ladbrokes, Ocado, Kingfisher, WH Smith J D Sports, Direct Line, Travis Perkins, Zoopla Property, and the Royal Bank of Scotland.

The Index is logically segmented into multiple commercial and industrial domains, facilitating investors’ use of industry-specific benchmarks, like mining or chemicals.

Final Thoughts

In conclusion, the FTSE All-Share Index provides important information about the UK’s stock market, covering various sectors. Comparing it with global indices like the Dow Jones and S&P 500 helps investors understand different market dynamics.

For those interested in different exposures, exchange-traded funds (ETFs) tracking the index can be a great investment option, much like those tracking the Hong Kong and US markets.

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