UK-only index mooted

The FTSE Group, the provider of stock indices based in Canary Wharf, pictured, is looking at introducing a share index to rival the FTSE 100 that would measure the performance purely of companies that contribute heavily to the British economy.

The FTSE Group, whose indices include the FTSE 100 and the FTSE All-Share, is considering launching an index of firms that derive at least a significant minority of their work from the UK.

Critics say the FTSE has lost its connection to its home market. It is dominated by giant mining companies and others that are based largely overseas, rather than by stalwarts of British industry. As such, say the critics, it is telling investors and the wider public more about the future price of steel than it is about prospects for corporate profits and the UK economy.

The new index would exclude those big mining companies and Eastern European ventures that have raised cash in London, as most of their income comes from overseas.