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TOP NEWS: M&S set to be FTSE 100 outfit again but Persimmon may fall

22nd Aug 2023 17:26

(Alliance News) - Marks & Spencer Group PLC is primed to make a return to London's premier FTSE 100 index, roughly three years after the founding member was booted out, with abrdn PLC once again among those making way.

That is according to a series of indicative index changes published by FTSE Russell on Tuesday. The indicative changes are published ahead of the final index review, the results of which are reported next week Wednesday.

High street retailer M&S, currently enjoying a whirlwind run on the stock market with shares up roughly 71% year-to-date, now has a market capitalisation of around GBP4.30 billion. It had been relegated from the FTSE 100 back in September 2019. It was a founding constituent of the list of London's top-tier stocks and had a 35-year stay there.

Potentially joining it among London's large-cap index will be generic medicines maker Hikma Pharmaceuticals PLC and veterinary drug firm Dechra Pharmaceuticals PLC. Dechra's stint on the stock market could be drawing to a close soon, however. Shareholders have backed a GBP4.5 billion takeover of the firm by EQT AB, which is a Swedish private equity company, and Luxinva SA, which is controlled by the sovereign wealth fund of the United Arab Emirates.

Technical products and services provider Diploma PLC is also expected to join the FTSE 100.

Among those possibly making way is abrdn, the second year in-a-row that it has been ousted from the FTSE 100 in the third quarter review. It had rejoined before the end of 2022.

Speciality chemicals firm Johnson Matthey PLC, no stranger to a demotion itself, also runs the risk of falling to the FTSE 250 again, industrial and electronics products distributor RS Group PLC also.

Tough housing market conditions have weighed on Persimmon PLC shares, which has fallen about 20% so far this year. The housebuilder also among those at risk of FTSE 100 relegation, according to the indicative changes.

888 Holdings PLC has had a rocky time lately, with its UK gambling licence placed under review after a vehicle backed by former executives of GVC Holdings, now known as Entain PLC, proposed additions to the bookmaker's board. Those proposed additions did not happen.

888 said last week Tuesday, meanwhile, that the review is not expected to have any impact on its operations. It is now odds-on for a return to the FTSE 250.

Greeting card seller and gifting firm Moonpig Group PLC and oil and gas producer Tullow Oil PLC are also set to return to the mid-cap index.

Construction materials firm Breedon Group PLC, clean energy technology developer Ceres Power Holdings PLC, and infrastructure and private equity investment manager Foresight Group Holdings Ltd will also join the FTSE 250, according to the indicative changes.

Fresh from floating in July, CAB Payments Holdings PLC will also be promoted to the mid-cap index. Shares in CAB, which provides cross-border payments and foreign exchange services, floated at 335 pence on July 6. The stock has fallen since, however, closing at 245.50p on Tuesday, down roughly a quarter from the IPO price. Its market capitalisation of GBP623.9 million puts it in FTSE 250 contention, however.

Set to make way in the FTSE 250 are outsourcer Capita PLC, trading platform CMC Markets PLC, lender Vanquis Banking Group PLC, tech investor Molten Ventures VCT PLC, chemicals manufacturer Synthomer PLC and industrial warehouse investor Warehouse REIT PLC.

Liontrust Asset Management PLC is also set for FTSE 250 demotion. The stock has fallen 38% since it announced a deal in to acquire asset manager GAM Holding AG in April.

The indicative changes were compiled using data at the market close on Friday. The actual index review, announced next week Wednesday, uses data from the market close a week from now.

The quarterly FTSE index review is based on changes to market capitalisation and sees those FTSE 250-listed stocks that are the 90th biggest or larger in the main market automatically move up, and FTSE 100 companies that are 111th biggest or smaller move down, keeping the indices balanced.

By Eric Cunha, Alliance News news editor

Comments and questions to [email protected]

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