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Anglo American on FTSE
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June 21, 1999: 11:23 a.m. ET
S. African mining firm enters London's leading index; Dax reweighted
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LONDON (CNNfn) - Europe's most prestigious stock index, London's blue chip FTSE 100, marked another phase in its transformation into a global market Monday when it took on South African mining powerhouse Anglo American PLC.
At the same time, Germany's biggest index, the electronic Xetra Dax, was reweighted Monday, giving Deutsche Telekom a larger percentage share of the overall index than carmaker Daimler Chrysler.
Under the reshuffling, which takes place at regular intervals, Telekom's stake in the benchmark index will rise to 14.7 percent, from a current 8.7 percent. Daimler's share declines from just under 12 percent, to 10.6 percent.
The reapportionment comes as Deutsche Telekom prepares to roll out a planned 250 million share capital increase.
Anglo American's addition to the U.K.'s pre-eminent stock gauge brings to three the number of South African companies to list on the FTSE 100. Rival mining group Billiton already is a component of the FTSE 100, along with South African Breweries.
A fourth South African company, life insurer Old Mutual, is slated to be considered for inclusion in London's leading blue chip ranks when the FTSE 100's indexes committee convenes for its next quarterly meeting in early September.
Their induction into London's benchmark index is also a measure of the rising premium overseas companies are putting on a FTSE 100 listing to advance their international strategies.
Analysts say that non-U.K. companies already account for more than half of the FTSE 100's total market capitalization.
In contrast with its Continental counterparts, such as Frankfurt's Xetra Dax, or Paris's CAC 40, where France Telecom represents one-tenth of the total share value, no single British company dominates the FTSE 100.
The most heavily weighted firm on the U.K. blue chip index, oil producer BP Amoco, contributes more than 9 percent of the gauge's value.
But BP Amoco is really a hybrid of a British and American company following BP's recent acquisition of U.S.-based Amoco.
At the 'crossroads' of global markets
In a growing number of sectors, analysts say, the FTSE 100 is taking on an increasingly international flavor, sacrificing its British complexion in favor of a hybrid marketplace that reflects the accelerating pace of cross-border mergers and acquisitions.
"London is still seen as the crossroads of all markets," said Jerry Evans, an equity strategist with Enskilda Securities, based in London. "Europe is roughly on its doorstep, one hour distant, New York is five hours distant and there's the cross-over with the Asian markets."
Evans said the bestowal of a FTSE 100 listing on the South African firms marks a return of sorts to the 1950s and 1960s, before South African firms, many in the gold and diamond sector, were delisted in London amid mounting political furor over the apartheid regime.
"It's now coming back in a better quality," Evans said. 
-- from staff and wire reports
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