10 Biggest Companies in the FTSE 100 List in Terms of Market Capitalization

FTSE 100 List| 10 Biggest Companies in Terms of Market Cap
The Financial Times Stock Exchange 100 index, also known as the FTSE 100 or more intimately termed the “Footsie," is a stock index that is comprised of the top 100 companies in the London Stock Exchange. The total capitalization of these companies is about 80% of all listed companies. Below, we'll take a look at a few of the most important and largest constituents of the FTSE 100 list of companies in terms of market capitalization. The FTSE index shows how successful top companies in the United Kingdom are. Although, part of the FTSE 100 comprises other global companies, which is why it is wrong to use the FTSE 100 as an indicator to ascertain the current state of the United Kingdom economy.

What is Market Capitalization?

First of all, let’s look at what market capitalization (or market cap) is all about. Market cap is the overall value of a company’s outstanding shares. Market cap is calculated by taking the outstanding shares of the company and multiplying it by the current price of its share. Additionally, a company’s market cap is what determines whether it will be included in the FTSE 100 list or not.

For instance, if a company has 2 million shares and is selling each for $20, it means each of the shares will have a market capitalization of $20 million. In other words, you can purchase such a company for $20 million if you have such money, and the stockholders are willing to sell their shares.

About the FTSE 100

The FTSE 100 index is made up of the top 100 LSE companies in terms of market cap as calculated on December 31 of the year. Operating since January 3, 1984, the index is run by a subsidiary of the London Stock Exchange Group, termed the FTSE Group. During its inception, it began with a value of 1000 and has experienced changes beyond recognition, such as disappearing companies, takeovers, and mergers.

However, in 2000 the FTSE 100 index increased to 7103.98 in terms of value. Notwithstanding, due to the financial crisis in 2007 – 2010, the index value got to its lowest level of 3500. Then in March 2017, it got to its highest value in intraday trading with a record of 7777.62 points.

Price changes are calculated in real-time and, when the market is open, they are published every second. While many index funds give a glimpse into the health of a particular economy, this is not true of the FTSE 100. That is because the FTSE is made up of many globally focused companies and additionally because it is significantly affected by exchange rates.

The FSTE index price is affected by various things such as economic shifts, politics, news, etc. that take place in Europe. However, announcements from the United Kingdom that affects FTSE include UK inflation rates, manufacturing numbers, GDP statistics, and Interest rate announcements.

Trading the FTSE100 at r1investing

r1investing lets you trade FTSE 100 CFDs for potential profit on changes in the value of the asset. What makes trading on CFDs (contracts for difference) attractive is that you can predict that the price of an asset will rise or fall and trade accordingly without buying the underlying asset. With CFDs on FTSE100, you can go long or short, whichever way you think the market will go. There are several potential advantages of trading with CFDs – including tax advantages, the ability to go long and short, and ease of changing positions. Trading with r1investing comes with the following benefits:

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1) Royal Dutch Shell 
The current number of constituents in the FTSE 100 list is actually 101. This is because Royal Dutch Shell’s (Shell) A and B class shares are both listed. Shell is a multinational oil and gas company that deals with all the aspects of the industry, including exploration, refining, and distribution. Shell’s A and B listings have a market cap of £210.82 billion and £210.64 billion, respectively.

2) HSBC Holdings 
Being the second-largest constituent in the FTSE 100 list of companies with a market cap of £132.80 billion, HSBC Holdings is the seventh-largest bank in the world and the largest in Europe. The company originated in Hong Kong and is listed not only in the London Stock exchange but in the Hong Kong Stock exchange as well. Today the banking enterprise considers both Hong Kong and the UK as its home markets.

3) BP 
Another multinational oil and gas company, BP, based in London, is one of the four biggest oil and gas companies worldwide in terms of revenue with a market cap of £108.50 billion. This puts it in third place in the FTSE 100. Formerly known as The British Petroleum Company PLC, the company was founded in 1889, and as of December 2018, BP operates in over 70 countries around the world and has an interest in over a dozen onshore wind sites.

4) GlaxoSmithKline 
With a £74.63 market cap, it ranks in sixth place in the FTSE 100. GlaxoSmithKline (GSK) is a pharmaceutical company established in the year 2000 when GlaxoWellcome merged with SmithKline Beecham. Today this pharmaceutical giant is the sixth-largest pharmaceutical company in the world. Headquartered in London, the company is listed on the New York Stock Exchange as well.

5) British American Tobacco 
Tenth in the top constituents in the FTSE 100 list of companies is the multinational tobacco company British American Tobacco with a market capitalization of £61.62 billion. British American Tobacco operates in 180 countries all over the world with its most recognizable brands, including Lucky Strike, Dunhill, and Pall Mall.

6) Unilever 
This company has a long-standing history of establishing popular products required for our everyday life. It is a multinational consumer goods company, which is dual-listed in the Netherlands and the United Kingdom. Its history dates back to the 1870s with its global reach and company scale attractive to investors. The company over time has regrouped to form over 400 brands, including Surf, Sunsilk, Magnum, Lipton, Knorr, Heartbrand ice creams, Omo, Dove, Rexona/Degree, Lux, Hellmann's, and Axe/Lynx.

In the London Stock Market, it is represented with the symbol ULVR and with a market capitalization of over £108,075m. During its fourth-quarter result, which was released in January 2023, it shows that the company experienced a sales growth of 1.5%, whereas the overall sales growth for the year was 2.9%. Also, the profit took a surge of 1.6%. In all of its three divisions, the Homecare division saw the highest growth, of 6.1% in 2019. However, the other two food and refreshment only managed 1.5% growth in the previous year.

7) AstraZeneca 
The company is among the top 10 in the FSTC 100 list of companies on the London Stock Exchange. It is one of the best Anglo-Swedish multinational companies you will find on the London Stock Exchange. The company majors in pharmaceutical and biopharmaceutical products. They don't only develop but also manufactures and sell these pharmaceuticals and biotechnology products on a global scale. These products are used to treat major diseases affecting humans, such as inflammation, neuroscience, infection, respiratory, gastrointestinal, cardiovascular, and cancer-related problems.

With a market capitalization of over £100.8 Billion, AstraZeneca is a reputable company to invest in the London Stock Exchange. In 2019, the total revenues of the company increased by 10%, which gave yield to a 59% increase in sales of new medicines.

8) Diageo 
Diageo has been a force to reckon with since the merger of Guinness and Grand Metropolitan brought the company into existence in 1997. However, most of its bands date back to hundreds of years. As a multinational alcoholic beverages company, it majors mainly in spirits like rum, vodka, and whiskey. Recently, it has made efforts to solidify its products to emerging markets throughout the world.

Interestingly, the company doesn’t only produce these products but also deals in the distribution of beers with some famous brands such as Smirnoff and Gordon’s, Johnnie Walker, and Guinness. Represented by the stock symbol DGE, Diageo has a market cap of £ 73.9 Billion and sits among the FTSE top 100 companies on the London Stock Exchange.

9) Barclays 
Barclays PLC is a renowned British investment and financial service company with a history dating back to the 1960s. The company is one of the four big banks in the United Kingdom, with the largest market shares of customers in England. Primarily, Barclays is involved with investment banking but has other additional services, including investment management, wealth management, personal banking, and corporate banking.

Barclays PLC has a market cap of £30.7 Billion despite the negative publicity that erupted some time ago. However, it remains a formidable bank in the United Kingdom and a force to reckon with as time goes. Importantly, active investors have a stake in the company, with its credit card and retail businesses performing well in the banking industry.

10) BHP 
BHP Group is a global company known for the production of various commodities such as uranium, iron ore, copper, and metallurgical coal. Represented in the stock market with BHP, it has a market cap of £ 84.6 Billion and part of the British arm of the Anglo-Australian multinational metal, mining, and petroleum corporation. Besides being listed on the London Stock Exchange, it is also listed on the Australian Stock Exchange.

The company is involved in the exploration, production, and processing of minerals. Besides, it also does hydrocarbon exploration, production, and refining. Represented in the stock market with BHP, it has a market cap of £ 84.6 Billion and part of the British arm of the Anglo-Australian multinational metal, mining, and petroleum corporation.

Sign up now to start trading

If these ten top companies sound intriguing, you may want to explore trading CFDs on the FTSE. The FTSE 100 list has 101 top companies, and by trading the index, you get a small piece of each of the companies without needing to own them all separately. Join now and start trading the FTSE or any of the other intriguing index CFDs.

FTSE 100 Trading Strategies

One of the efficient ways to start trading the FTSE100 is to use technical analysis patterns. It helps to identify turning points in the market and therefore areas for buying and selling. A popular price action pattern is the engulfing candle pattern, which comes in two types: a bearish pattern and a bullish pattern. Candlestick combinations can give powerful BUY or SELL signals. There are patterns indicating trend prolongation or reversal. The taken signals must be correlated with other data. For example, with the same indicators.

The traders commonly use the following strategies to deal with FTSE 100 blue chips:

  • trading using technical (graphical) analysis;
  • trading using reversal candlestick patterns: Hammer, Hanging Man, Inverted hammer, Shooting star, Doji, and Engulfing;
Trading hours are daily from 8:00 to 16:29 GMT (closing deals) and the closing of trades itself takes place at 16:35. All daily data on the index is published in the Financial Times from the day the index was calculated.

What moves the FTSE 100’s price?

The FTSE 100 rate is primarily influenced by factors related to the economy of Britain and the EU:

The pound rate, interest rates of the Central Bank; reports on GDP, production indices, inflation; as well as the political situation (Brexit), changes in tax legislation, export volumes, etc.

Bad data usually negatively affect the FTSE and lead to its fall and vice versa.

Much also depends on the specific composition of the FTSE index and its constituents at the current moment, for example, the more oil companies there are, the more the index is exposed to events affecting the hydrocarbon market, etc.

Even many British companies still receive the largest share of profits from exports to other countries, so their revenues are usually indicated not in a local currency, but in USD.

What are the FTSE top 100 companies? 

3i

Land Securities

Halma

DS Smith

Antofagasta

St. James's Place plc

Kingfisher plc

SSE plc

Anglo American plc

Sage Group

Intertek

Segro

Aveva

Whitbread

Bunzl

Prudential plc

Glencore

Smurfit Kappa

DCC plc

M&G

Hikma Pharmaceuticals

Royal Bank of Scotland Group

Compass Group

Ocado

Just Eat

Rio Tinto Group

International Airlines Group

Unilever

JD Sports

WPP plc

Carnival Corporation &plc

Rightmove

Ashtead Group

Standard Chartered

BP

Sainsbury's

Croda International

Severn Trent

Experian

Next plc

British American Tobacco

Rentokil Initial

Coca-Cola HBC

Melrose Industries

Burberry

Meggitt

Berkeley Group Holdings

Scottish Mortgage Investment Trust

BT Group

Reckitt Benckiser

GlaxoSmithKline

National Grid plc

Imperial Brands

Rolls-Royce Holdings

BAE Systems

Vodafone Group

HSBC

London Stock Exchange Group

ITV plc

Phoenix Group

Barclays

TUI Group

Auto Trader Group

United Utilities

CRH plc

NMC Health

Aviva

Mondi

Associated British Foods

RSA Insurance Group

Informa

RELX

Barratt Developments

Persimmon plc

Diageo

Morrisons

Ferguson plc

Lloyds Banking Group

EasyJet

Legal & General

BHP

Royal Dutch Shell

Evraz

Polymetal International

Johnson Matthey

Smith & Nephew

InterContinental Hotels Group

Spirax-Sarco Engineering

British Land

Taylor Wimpey

Flutter Entertainment

Pearson plc

Hargreaves Lansdown

Smiths Group

Admiral Group

Schroders

AstraZeneca

Standard Life Aberdeen

Centrica

Tesco

FAQ

How do I invest in the FTSE 100 companies?

If you are an individual, there are two ways of investing in the FTSE 100 companies. The first method is by trading, while the second is by investing in this company. When you invest in the FTSE stock of a company, you are buying the shares of the company with the hope that its value will increase in the future. Additionally, you can invest in FTSE exchange-traded funds (ETF). Furthermore, the other option is to trade the principal shares of FTSE 100 stocks or FTSE 100 ETFs. The r1investing platform has everything you need to invest in your favorite FTSE companies.

Are FTSE 100 prices in pence? 

Yes, FTSE 100 prices are listed in pence instead of the pound, and a hundred pence is equivalent to a pound. It is more sensible to use pence in stock because the share prices are usually lower. This price can be below a pound, which is why pence are used in stock.

Can you buy FTSE 100 shares? 

The FTSE market comprises the top 100 largest companies in the London Stock Exchange, including companies such as Barclays, HSBC, Sainsbury, BP, and Unilever. Although you can invest directly in the FTSE, however, you can also buy the shares of these companies through an exchange-traded fund that records the performance of the stocks in the market.

What is the difference between FTSE 100 and 250? 

The FTSE 100 is a list of the biggest 100 companies on the London Stock Exchange. Its total index value is placed at £1.3 trillion. The FTSE 100 is something referred to as “footsie” or “blue chip” companies. However, the FTSE 250 comprises the next 250 largest companies traded by both individuals and investors in the London Stock Exchange. Their collective worth is estimated to be £390Billion


The information above is for education purposes only and cannot be considered as investment advice. Past performance is not a reliable indicator of future results.
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Written by:
Omer Aragón Godínez

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