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FTSE 100 Market Shares Prices Overview | FTSE Trading


April 14, 2020
FTSE 100 is used as an indicator of the financial performance of the UK’s leading companies. This article highlights an overview of the market shares prices of the blue-chip index.
FTSE 100 Market Shares Prices Overview | FTSE Trading
The effect of the coronavirus outbreak globally hit hard. Global stock markets experienced the most significant drop since the 2008 financial crossroad.
 
With the world’s leading oil producers crashing over the oil output cuts. Plus, Wall Street trading stopped for a while as traders feared the global recession.
 
But, the FTSE 100 index has plummeted to its lowest. Right after the London market dropped to 6%. Making it one of its biggest single-day falls since the Black Monday of 1987. According to trading experts, a continued drop will see the UK’s blue-chip index get to never seen lows. These lows might not even match the European sovereign debt crisis.
 
So, what next for the British economy during and after the coronavirus crisis?
 
This guide will find details about FTSE trading and an overview of FTSE 100 market shares values.

Financial Times Stock Exchange (FTSE) 100 Index

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FTSE 100 is a UK share index consisting of 100 largest companies as per the London Stock Exchange (LSE). These firms got classified based on the highest market capitalization. They come referred to as blue-chip companies.

Market capitalization refers to the size or share value. All the stocks of the listed constituent firms. The blue-chip index gets used as an indicator of leading financial firms in the UK’s. Which in turn reflects the health and stability of the country’s economy.

FTSE 100, established in 1984 with an initial value of £1000.

Other FTSE Indices

Also, to FTSE 100, the UK market got defined by two other FTSE indices, including FTSE SmallCap and FTSE 250. The three indices operated by a subsidiary of the LSE known as the FTSE Group.

Like FTSE 100 FTSE 250 and FTSE SmallCap gets weighted on market capitalization.

FTSE 250 consists of the leading companies as per the LSE listing from the 101st to 350th positions. FTSE SmallCap represents the largest firms in the 351st to 619th ranks as per the LSE listing. A combination of FTSE 100 together with the FTSE 250 makes up the FTSE 350 index.

How the Blue-chip Index is Calculated

The blue-chip index calculation happens in real-time. Using the index values and collective market capitalization of the listed constituent companies. Total market capitalization used gets influenced by the share values of blue-chip companies.
 
Because the prices of company shares keep changing daily. Resulting in changes in the stock index value, due to the changing nature of the blue-chip index. Different companies join while others leave the index.
 
The FTSE Group determines the index’s constituents every quarter. Including the months of March, June, September, and December.

The Market Shares Values Overview of FTSE 100

FTSE 100 Market Shares

Since the outbreak of coronavirus in early 2020. The market share values of FTSE 100 have experienced dynamic disruptions. Here is an overview of how these prices have changed over time during this global pandemic.
  1. The Sinking of the Blue-Chip Index:
    The transmission of COVID-19 got confirmed in the UK towards the end of February 2020. And the blue-chip index dropped by 25% in more than 300 points, wiping out up to £469 billion.
    As a result, the index shrunk into what gets known as the bear market, as share values fall more than 20%.
  2. FTSE 350 Constituents in a Negative Territory:
    The blue-chip index reflected one significant one-day drop in history in March 2020. All the constituent companies in FTSE 350 were already within the negative territory.
    Some of these companies having shares fall close to 50%. Retail businesses, travel, and oil sectors have suffered losses altogether.
  3. Travel Fears and Restrictions:
    Even when flights from the UK get not restricted from the US. Fears raised by the pandemic affected the air-travel sector. And companies such as EasyJet and British Airways drop their shares to 7% to 9%.
  4. Blow in the Oil Industry:
    As the largest oil companies across the globe crashed over oil prices. Firms as Royal Dutch Shell had their shares slip between 4% and 5%.
  5. The Sinking of the Dow Jones Index:
    World Health Organization declared coronavirus to be a global pandemic. Moved investors to become quite sceptical about the worldwide economy’s stability. And the US Dow Jones index sink into the bear market territory.
  6. FTSE 250 Affected:
    As the world continues to fight the pandemic, the FTSE 250 has also slipped down to 6.1%. Affected Firms includes British American Tobacco, HSBC Holdings. Also, Lloyds Banking Group, and Taylor Wimpey among others.
  7. The Recovery:
    Although the blue-chip index has been down with hundreds of points. The index has been able to recover losses at some point. Beneficiaries of this recovery include companies such as Morrison Supermarkets PLC.
    Yet, industries such as the travel and currency market continue to suffer misery. Because of the imposed measures and regulations to curb the pandemic.

Is Now the Right Time to Trade FTSE 100 Shares?

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Recent trading sessions have shown signs of recovery of the FTSE stock market. The downward trend in the market is likely to continue for some time. Yet, what is there for the investors?
  1. Short Term Prospects
Effects of the global pandemic can get viewed in two lenses. The short-term and long-term prospects. In the short run, investing in blue-chip shares looks like a terrible idea.
 
Because the dynamics of the global economy are unpredictable. For instance, new covid cases and related deaths have continued to rise across the world.
 
It forces governments to impose measures that have a negative economic impact. Including lockdowns, curfews, and working-at-home policies.
 
These effects may take time to get alleviated. Which is why this could not be the ideal season for most investors.
  1. Long Term Prospects
Most of the blue-chip stocks get offered with wide safety margins. Promising significant scope for future recoveries.
 
Most of these stocks are already getting priced against the risks facing the economy. Besides, the blue-chip index had a solid reputation for quick recovery after a crisis. For some investors, share dealing now could be a very profitable move.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.

Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.

Categories: Education , Trading

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