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Segro and G4S promoted to FTSE 100

1 June 2017

Two property companies have faced very different fortunes in the FTSE’s June quarterly reshuffle.

The recent trend for e-commerce has boosted real estate investment company Segro, which has joined the FTSE 100, alongside international security services company G4S.

However, with weakening Sterling and rising inflation impacting retail sales, Intu Properties, which owns some of the largest shopping centres in the UK, has been relegated to the FTSE 250.

Entering the FTSE 100:

G4S

The company is back in the top flight after an absence of 18 months. The company was relegated to the FTSE 250 in December 2015 against a backdrop of negative headlines around the loss of an electronic tagging contract in 2013 and a failure to provide enough security for the 2012 London Olympics. After five years of turbulence, shares were as low as 173.6p in summer 2016 but have seen an upturn in 2017, peaking at 328.00p towards the end of May (see the five-year performance chart for G4S). At close of trading on 31st May 2017, the share price was 325.00p.

Segro

Formerly known as Slough Estates, Segro provides flexible business space in edge-of-town parks in Western Europe and North America. The warehouse space provided by Segro is used by online sellers, which have enjoyed a boost by the recent trend for internet shopping.

Exiting the FTSE 100:

Intu

In contrast to Segro, the fashion for e-commerce has had a negative impact on Intu, which operates shopping centres across the UK. Recent rises in inflation, and slower wage growth, have put pressure on retailers that sell their goods from traditional stores. Last month, the Confederation for British Industry principal economist Alpesh Paleja said: “Taken together with higher import cost pressures from a weaker Pound, this is creating a challenging environment for retailers.”

Hikma Pharmaceuticals

The company’s share price fell more than seven per cent after it cut revenue forecasts for the full year on 19th May 2017. Earlier in the month, the US Food and Drug Administration had announced it was withholding approval for Hikma’s version of the asthma drug Advair Diskus. Shares in the company have, since then, recovered some ground, and were 1698.00p at close of trading on 31st May 2017.

Joining the FTSE 250 will be Yorkshire polyhalite miner Sirius Minerals, which announced the development of a mine in North Yorkshire last year; IT services provider FDM Group Holdings; TBC Bank Group; investment fund Pershing Square Holdings, specialist manufacturing investor Melrose Industries and industrial thread manufacturer Coats Group, which was a founding member of the FT 30 index in 1935.

Department store Debenhams has lost its place in the FTSE 250, along with online electrical goods retailer AO World, Allied Minds, an intellectual property group backed by fund manager Neil Woodford, investment specialist BH Macro, engineering specialist Keller and British private equity and investment management business SVG Capital.

Changes to the index come into effect on Monday 19th June 2017.

Investment and income arising from them can fall in value and you may lose some or all of the amount you have invested. Past performance and forecasts are not reliable indicators of future results or performance.

Please note that this article is for information only and does not constitute a recommendation to buy or sell the shares of the companies mentioned.

 

 

 

 

Contact:
Ruth Peterson
PR Executive
Email: ruth.peterson@redmayne.co.uk
Tel: 0113 200 6476

Branch: Leeds (Head Office)

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