Wed, 19th Sep 2018
The next FTSE 100 reshuffle is set to take place on September 24, and it will be based on share prices as of the close of trading on Tuesday. A few companies with the potential to be relegated from the FTSE 100, assuming that there is not a massive change in market capitalization over the next couple of sessions, are Marks & Spencer, Royal Mail, and Rightmove.
Marks & Spencer has been stubbornly holding on to a place in the FTSE 100, and at the moment it stands just above the threshold for relegation, as does Royal Mail. Both companies are at risk of relegation if their prices fall even slightly. Royal Mail has only just returned to the FTSE 100 this year, after it saw a strong rally. The company hit an all-time high in May, but shares have fallen significantly since then.
Rightmove is the most likely candidate for relegation, with the company having seen a difficult trading year. Shares high a high point in May thanks to a slew of merger and acquisition activity, but the company has seen some difficulties since then. They are facing increased competition from companies such as Zoopla and PurpleBricks. While the company has managed to increase its profits and revenue over the last year, investors remain concerned about the threat of increasing competition and the future of the housing market, and those factors have weighed heavily on the group, sending it to the bottom of the index.