Commentary – Share Prices

In the last 30 years three of the most quoted UK Share Indices – the FTSE100, the FTSE250 and the FTSEAll-Share (which comprises around 1000 companies traded on the London Stock Exchange) – have increased at an average annual rate of around 4.1%, 7.0% and 4.5% respectively. Using the GDP deflator to correcting for inflation over the same period the average growth rates were 1.3%, 1.7% and 4.3% respectively.

Over the more recent period from 2000 to 2019 the average nominal rate of growth of the FTSE100 has not been sufficient to prevent the real rate of growth being negative. Similar share indices of a number of other countries have also shown negative real growth over the same period.


Following the financial crisis beginning in 2007, Share Price indices fell sharply throughout the world. But there is little evidence that markets ‘saw the crisis coming.’ Had they done so the indices would have fallen before – not when and after – the crisis happened.

Data

Sources
1. UK Monthly (1986Jan-) FTSE 100 Index. Source: Yahoo!Finance UK & Ireland, FTSE 100.

2. UK Monthly (1986Jan-) FTSE 250 Index. Source: Yahoo!Finance UK & Ireland, FTSE (MID) 250.

3. UK Monthly (1986Jan-) FTSE All-share Index. Source: Yahoo!Finance UK and Ireland, FTSE All-Share.

4. Selected countries' Annual (1960-) Index of Share Prices 2010=100, OECD, Finance, Monthly Financial Statistics, Share Prices.

Data series
Monthly UK Share Prices
Variables: UK Monthly FTSE 100, FTSE 250 and FTSE All-Share Indices.

Annual Selected countries' share prices.
Variables: OECD Annual Index of Share Prices 2010=100

Download data
All the finance data series are available in Excel xlsx format:
Finances_Data.xlsx [228KB]