This week marks the 40th anniversary of the FTSE 100. Since its launch, the index has tracked the fortunes of the 100 largest companies listed on the UK stock exchange and remains the leading such list in the UK. It is seen as a key indicator of the country’s economic performance and most CEOs aspire to count their company among its ranks.
Prior to 1984, the Financial Times’ FT 30 was the primary index for stocks and the 30 companies that featured on it were decided on by the paper’s editors. With the shift to electronic share dealing, demand grew for a new index that provided regular updates to allow for intra-day trading.
“With the launch of traded options, London needed an index that was continuously updated during market hours and more representative of the London stock market,” says John Spiers, the founder of Bestinvest and chair of EQ Investors who was working as a stockbroker at the time of the footsie’s launch.