FTSE 100 to remain unchanged in reshuffle for first time in 12 years after ‘peaceful summer’
The FTSE 100 is set to remain unchanged following its quarterly reshuffle for the first time in 12 years.
Despite some “low-hanging fruit”, with the likes of Rightmove, Royal Mail and Marks & Spencer all flirting with demotion, there are not expected to be any promotions or relegations from the exchange listing of London's largest public companies.
For automatic entry, FTSE 250 firms would need to reach the position of 90th biggest – a value of around £5.5bn – at its closing price today, while a FTSE 100 company would be automatically demoted if it fell to 111th biggest – approximately £4.2bn.
Retirement housebuilder McCarthy & Stone looks set to drop out of the FTSE 250 after a profit warning in June saw the company's share drop to their lowest level since floating on the stock market in 2015.
Alfa Financial Software Holdings, Renewi and RDI REIT are also expected to be demoted into the FTSE Small Cap Index.
Halfords was also close to the drop zone but a share price rise of more than six per cent this morning off the back of a revenue rise looks to have secured its safety.
Read more: Halfords sales speed up ahead of new CEO's strategy
New entrants into the FTSE 250 could include cybersecurity firm Avast, Shell's licensee in Africa Vivo Energy, trading company Plus 500 and guarantor loan provider Amigo Holdings.
But the FTSE 100 is expected to remain unchanged for the first time in 12 years.
Read more: Rightmove faces FTSE 100 eviction as engineering firms climb, say analysts
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The absence of any promotions or relegations from the FTSE 100 paints a picture of a relatively peaceful summer since the index was reviewed in June.
“There are some high profile names which are low-hanging fruit in the blue chip index though. Rightmove, Royal Mail and Marks & Spencer aren't in the automatic drop zone as things stand, but are running the gauntlet of being pushed out of the FTSE 100 by companies breaking into the index.
“As it happens, this time around it looks like no contenders are going to challenge the position of these incumbents.”
Full details of the reshuffle will be confirmed tomorrow and changes will be made effective after market close on Friday 21 September.