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06 September 2018

No change to the FTSE 100 in quarterly review

The latest quarterly reshuffle has shown no change to the FTSE 100 for the first time in 12 years.

There were no demotions or promotions between the FTSE 100 and the FTSE 250 in the September review following a relatively peaceful period for the market.

This is not to say that everything has been plain sailing for companies, especially those near the bottom of the index. Marks and Spencer just about managed to cling to its place as the current tough conditions for retailers continue, with Debenhams having dropped out of the FTSE 250 in June 2017 and House of Fraser being bought out of administration by Sports Direct in August.

Royal Mail dropped into the FTSE 250 in September 2017 following a fall in letter deliveries and an industrial dispute around its pension scheme. It was promoted back to the FTSE 100 in March 2018 following a recovery in its share price. Having peaked at 631p in May this year, the share price has struggled to maintain its momentum and was 467p at close of trading on Wednesday 5th September.

Promoted into the FTSE 250 was Amigo Holdings, which provides guarantor loans in the UK to people who are unable to gain credit from the larger banks. The promotion came despite founder James Benamor stepping down from the board, following growing criticism of the company’s methods. Amigo demands that borrowers have a guarantor who will take on responsibility for paying if they default.

Joining Amigo is Czech Republic-based internet security company Avast. Its performance underwhelmed following its initial public offering in May, with its price dropping from 245p a share to less than 210p in July. However, it has since recovered and was 260.4p at close of trading on Wednesday, when the reshuffle was announced.

Online trading platform Plus 500 has joined the FTSE 250, having joined the London Stock Exchange (LSE)’s main market in May. Completing the quartet of additions to the mid-cap index was Vivo Energy, a Netherlands-headquartered company which distributes and markets Shell-branded fuels, liquefied petroleum gas and lubricants to customers in Africa. The company listed on the LSE in May this year in the largest Africa-focused initial public offering since 2005.

Demoted from the mid-cap index was Alfa Financial Software Holdings, which on Tuesday (4th September), reported a fall in first-half profits as delays in contracts led to fewer software projects.

Also facing demotion were retirement housebuilder McCarthy and Stone, income-focused real estate trust RDI Reit and waste management company Renewi.

The changes are due to take effect from Monday 24th September 2018.
Please note, 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.
 
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No change to the FTSE 100 in quarterly review
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