FTSE 100 winners and losers of the past 10 years

Hikma Pharmaceutical’s promotion to the FTSE 100 at the expense of Inmarsat demonstrates the fluidity of London’s blue chip index.  Since the launch of the FTSE 100 in 1984 there have been over 400 changes to the benchmark's membership.

A look back at the composition of the UK stock market’s headline index ten years ago shows that Oil, Banking and Mining stocks have decreased in influence, with Tobacco, Beverages, Travel & Leisure and Support Services taking up the slack.

"The most dramatic changes to the index tend to occur when a sector is hot or conversely is falling from grace. These trends can lead to a rash of promotions or demotions, trends which can make or cost investors money if they are (or are not) spotted soon enough", says Russ Mould, AJ Bell Investment Director.

“The biggest slump over the past ten years has been seen in the banking sector following the financial crisis of 2008 and a host of mis-selling scandals since. 

“The resources sectors have also seen huge change since 2006. The collapse of the price of Oil and BP’s deepwater horizon disaster have seen the presence of Oil stocks in the FTSE 100 fall from 19.3% in 2006 to 13% today.  Mining stocks have also been hit hard by slowing demand for commodities from emerging markets and the resulting collapse in prices.  Mining stocks saw the third biggest decline in their position in the FTSE 100, falling from 7.1% in 2006 to just 4.7% today.”  (See table 1 for full list.)   

“Despite their significant falls in influence Oil and Banking stocks remain the two largest sectors in the FTSE 100 and so are of huge importance to its future performance, particularly relevant for retail investors in products that track the performance of the index.

These articles are for information purposes only and are not a personal recommendation or advice