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FTSE 100

A decade of trade: 2009 — 2019

How have the constituents of the FTSE 100 fared over the past 10 years? Explore the chart below to separate the stalwarts and fast growers from the cyclicals and turnarounds.

The FTSE 100 has gained 108% (excluding dividend returns) from its March 2009 low during the global financial crisis, producing an annualised return of 7.6% throughout the economic expansion. Over the past 10yrs, while both banking and energy sector weightings have declined, they both continue to dominate the performance of the index. Since the 2016 EU Referendum, FTSE 100 investors have payed closer attention to the volatile swings in the Pound, given that roughly 75% of FTSE 100 earnings are from overseas as such the direction of the Pound can have an influence on the returns of the index.

FTSE 100: 2009 — 2019

Graph shows FTSE 100 performance year on year over the past decade. Additional companies can be added to the chart using the search facility and filters below.

The FTSE 100:
A decade of trade

Chris Beauchamp

Chris Beauchamp

Chief Market Analyst, IG group

As the global economy recovered from the financial crisis, so too did the FTSE 100. It doubled by the beginning of 2015, but then the oil sell-off and weakness in China hit oil names like BP and miners such as Rio Tinto. These sectors are heavyweights within the index, and their weakness saw the index give back about a quarter of its gains. However, stimulus in China and recovery in other parts of the globe saw the index rally from the beginning of 2016 to an all-time high in May 2018.

But since June 2016, the outlook for the index has been clouded by Brexit. As an index comprised heavily of international firms, the strength or weakness of sterling has a major impact on the index. In the wake of the Brexit vote the pound sank, and continued to fall in 2017, helping the index to hold its ground. As hopes of a Brexit deal have revived, if only briefly, the pound has recovered, which has meant that the FTSE 100 has not bounced back in 2019 to the same extent as US markets.

Key winners over the past few years have been catering group Compass, which has benefited from the outsourcing of catering services, along with insurers Legal & General and Prudential, with the latter benefiting from the rise of the Asian middle class.