Tue, 25th Sep 2018
For the first time in twelve years, the FTSE 100 is set to remain unchanged during the next quarterly reshuffle. The UK’s leading index gets re-evaluated on a quarterly basis. The FTSE 100 is a list of the 100 biggest companies listed on the London Stock Exchange based on market capitalization, with the FTSE 250 being the 250 next biggest companies.
Usually, there are a few companies that drop out of the FTSE 100 as their share prices fall, with the top ranked FTSE 250 companies replacing them. This time around, there will be no promotions or demotions when the reshuffle takes place. This is the first time that the index has remained unchanged since March 2006.
Analysts are attributing the lack of change in the index to the relatively peaceful market conditions that have been seen over the last several months. Some have gone so far as to say that the markets have been ‘directionless’, and that the recent lack of change is a sign of that lack of direction. While there has been some share price change, much of it has been down to political fundamentals, and companies have all moved in tandem.
During the previous reshuffle, GVC Holdings and Ocado were promoted to the FTSE 100, with Mediclinic International and G4S being demoted from the top flight into the FTSE 250. This time around, it had been expected that Right Move might be demoted to the FTSE 250, but the company managed to just hold on to a spot in the top flight.