The FT-SE 100, launched in 1984, measures movements of the 100 largest companies. The new FT-SE Mid 250 will measure movements of the 250 next largest companies. The FT-SE Actuaries 350 will be calculated by adding the two together.
At the same time, 35 sector indices based on the FT-SE 350 will be launched. These will be updated during the day like other FT-SE indices, allowing investors to see how different groups of companies react to news.
In January there will be further changes: a new FT-SE SmallCap index will be launched and the FT-Actuaries All-Share will be extended from 650 to 850 companies. Both will be calculated once a day.
Gordon Bagot of WM Company, the chairman of the index design working party, said the new index would be a 'better guide to UK plc'. But Peter Jones of Greenwell Montagu, a deputy chairman, said he thought the FT-SE 100 index would remain pre-eminent for some time.
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