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08 December 2016

ConvaTec and Smurfitt Kappa elevated to FTSE 100

ConvaTec Group and Smurfitt Kappa have joined the FTSE 100 in the index’s quarterly reshuffle.

ConvaTec, which focuses on creating medical products and technologies to help manage long-term health conditions, joins the index less than two months after floating on the London Stock Exchange in October this year. Upon making its debut, it was valued at around £4.4bn, making it the biggest London listing of 2016.

Joining ConvaTec in the FTSE reshuffle is Dublin-based packaging group Smurfit Kappa. The company’s market capitalisation has risen five-fold in the last five years following a long-term turnaround plan. After floating in 2007, Smurfit Kappa shares fell to around 140p in 2009, but went on to recover. It switched its primary listing to the London Stock Exchange in March this year and has, since this time, seen its share price rise above 1900p in August.

The two companies replace precious metal miners Polymetal International and building supplies company Travis Perkins, which will now join the FTSE 250. Polymetal International was elevated to the FTSE 100 in September’s reshuffle after the EU referendum result helped increase the price of gold, viewed by investors as a safe haven during times of uncertainty for the stock market. However, the company’s shares have fluctuated considerably since then.

Travis Perkins was also impacted by the vote for ‘Brexit’, and last month issued a profit warning, citing an “uncertain” outlook in the UK. Britain’s construction industry in general was hit in the aftermath of the referendum result, according to the Office for National Statistics, which reported that the industry shrank 1.1 per cent in the three months to September.

Oil and gas exploration and production company, Nostrum Oil & Gas, real estate investment trust NewRiver REIT and Swiss-headquartered iron ore producer Ferrexpo will enter the FTSE 250 when the changes are implemented at close of business on Friday 16th December. Leaving the FTSE 250 are cyber security company NCC Group, DFS Furniture, British electronic component maker Laird, and estate agent Countrywide.

Please remember that investments 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.

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

ConvaTec and Smurfitt Kappa elevated to FTSE 100
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