- Three new faces in the FTSE 100
- Five stocks join the FTSE 250
- Changes take effect from 19 December
Index compiler FTSE Russell, owned by London Stock Exchange Group (LSEG), has just released the results of its December quarterly review.
Three stocks are being promoted to the FTSE 100 large-cap index, meaning three stocks are leaving to join the FTSE 250 mid-cap universe, as Shares explains.
WHO IS JOINING THE BIG LEAGUE?
The three stocks graduating from the FTSE 250 to the FTSE 100 are asset management group Abrdn (ABDN), property and casualty insurer Beazley (BEZ) and engineering firm Weir Group (WEIR).
Their inclusion raises the weighting of financial stocks in the main index, while firms managing products which aim to replicate the index - such as ETFs (exchange-traded funds) - will have to buy the shares in the same proportion.
According to independent brokerage firm Olivetree, the expected demand for Abrdn is around 60 million shares or three times the average daily volume, while demand for Weir is seen at nine million shares or seven days' volume and for Beazley could be 20 million shares or 10 days' volume.
To make way for the three new entrants, veterinary drug maker Dechra Pharmaceuticals (DPH), independent oil and gas producer Harbour Energy (HBR) and private equity investment firm Intermediate Capital (ICP) will drop to the FTSE 250 mid-cap index.
FTSE Russell says its rules-driven quarterly reviews ensure the indices ‘continue to portray an accurate reflection of the market they represent’ and form an essential component of their management.
MID-CAP MOVERS
Also joining the FTSE 250 are Triple Point’s Digital 9 Infrastructure (DGI9) and the European Smaller Companies Trust (ESCT), managed by Janus Henderson.
Making way for these additional joiners are sheltered accommodation provider Home REIT (HOME), whose shares have tumbled recently due a negative report by a US short seller, and oil services and infrastructure firm Petrofac (PFC), which join the smaller companies index.
All of the changes from the latest review will be implemented at the close of business on Friday 16 December and take effect from the start of trading on Monday 19 December.
