Economics: Concentration of FTSE 100

Returns so far this year in the FTSE 100 are leaning away from the very stocks to which there is suc...

Returns so far this year in the FTSE 100 are leaning away from the very stocks to which there is such a heavy concentration, with pharmaceutical and telecom stocks among the worst performers. Increased merger and acquisition activity is seen as a catalyst behind the performance of a number of stocks outside the major four sectors. The FTSE 100 is heavily dependent on the performance of its largest members, which are concentrated into just four sectors: oil, pharmaceuticals, banks and telecoms. Although New Star notes that recently commodity-related companies have grown to the point where ...