Here’s a quick look at the possible winners and losers on the London stock market as the FTSE 100 looks at a reshuffle to ditch poor performers and promote rising stars.
The FTSE goes through a review every three months.
In the first week of June, the biggest name expected to wave goodbye to the FTSE’s index of the 100 most capitalised companies is the Royal Mail.
Although the Mail has posted good figures with better than expected profits, the company is considered vulnerable from relying too much on international business at the expense of letters and direct mail falling away at home.
The FTSE’s smallest drugs firm is also teetering on the brink of relegation.
Hikma Pharmaceuticals faces a number of problems – a generic asthma drug the management was banking on is rumoured unlikely to win approval in the US and the management is under fire for breaking rules when acquiring West Ward Columbus.
Other companies looking at leaving the FTSE100 include shopping centre manager Intu Properties, credit firm Provident Financial and property developer Hammerson, says Helal Miah of The Share Centre.
The most tipped firm to enter the FTSE100 is security provider G4S. The company is the London stock exchange’s largest employer and operates in 110 countries.
“Snapping at its heels is warehouse and industrial properties developer Segro. The group, whose customers are in the UK and Continental Europe, focuses on edge of town flexible business spaces,” said Miah.
Tipped for promotion
“The increasing interest for online shopping means the demand for warehouse space is needed now more than ever, and this is likely to be the reason for its success of late.
“Also in contention is housebuilder Berkeley whose shares have recovered to pre-Brexit levels, NMC Healthcare which is one of the largest health care providers in the private sector in the UAE and precious metals mining company Polymetal International. It will definitely be worth keeping an eye on their prices over the next few days.”
In the last FTSE reshuffle, which was in March, retailer Dixons Carphone and business manager Capita dropped out of the top 100.