We take a look at the latest changes to the FTSE indices, and tell you what's in and what's out.
The latest quarterly changes to the FTSE indices have been announced, with energy and gold companies moving up to the FTSE 100; and a tour operator, and the London Stock Exchange itself, falling back to the FTSE 250.
FTSE 100 changes
Essar Energy (LSE: ESSR) is the newly listed spin-off from the Mumbai-based conglomerate Essar Group -- the group, and Essar Energy, are controlled by the Ruia family, one of India's richest.
The company's business comprises two divisions:
- power generation and transmission; and
- oil and gas -- exploration, production, refining and marketing.
Its listing on the main London stock market on May 4 raised £1.2bn, the largest fund-raising the market has seen since the turmoil of 2008. It was, however, slightly less than expected, as general unease caused by the Greek debt situation led the company to float at only 420p, compared to the original guidance of 450p to 550p. The shares fell another 7% on their first day of trading.
Pre-flotation sentiment for the company was also not helped by the widespread reporting of a comment from one of the company's advisers, warning about "a complex structure and a lack of clarity on the flow of funds between the UK unit and its Indian subsidiaries".
Nevertheless, Essar is big enough to join the top league, and now trades at 442p.
African Barrick (LSE: ABGL) is the other commodity-related spin-off joining the main index. It consists of four Tanzanian gold mines and several exploration properties that were owned by the Toronto-listed Barrick Gold; Barrick will be familiar to many as the world's biggest gold miner.
African Barrick was launched on the London exchange in March at 575p, which was towards the lower end of the 550p to 650p range initially indicated, with the parent company retaining 75% of ABG. The shares now trade around 620p.
Thomas Cook Group (LSE: TCG), the tour operator that entered the FTSE 100 in December 2007, has seen its shares fall on fears of reduced consumer spending -- clouds of ash in the atmosphere probably didn't help either. Currently trading at 197p, the shares are down nearly 30% since March, and have been relegated to the FTSE 250.
London Stock Exchange Group (LSE: LSE) has also been dropped to the mid-cap league, but it has been on the borders of the the two indices for some time. Last year it left the FTSE 100 in March, only to re-join in June. At 600p, the shares are down nearly 40% since October. Chief Executive, Xavier Rolet, commented recently, "in many cases, the fruits of our labour to date have yet to be harvested".
FTSE 250 changes
Among the new entrants to the FTSE 250 is Anthony Bolton's new Fidelity China Special Situations (LSE: FCSS) investment trust. As Malcolm Wheatley reports, Bolton has been able to use the current crisis/opportunity to invest the full £460m proceeds of the fundraising at what he describes as 'attractive' valuations.
Others joining the FTSE 250: Centamin Egypt (LSE: CEY), BH Macro (LSE: BHMG), SuperGroup (LSE: SGP), CPP Group (LSE: CPP), JD Sports Fashion (LSE: JD), and Promethean World (LSE: PRW).
And dropping out of the FTSE 250: JP Morgan Japanese Investment Trust (LSE: JFJ), Trinity Mirror (LSE: TNI), HMV Group (LSE: HMV), F&C Asset Management (LSE: FCAM), Dunedin Income Growth Inv Trust (LSE: DIG), Ecofin Water and Power Opportunities (LSE: ECWO), Brewin Dolphin Holdings (LSE: BRW), and Melrose Resources (LSE: MRS).
The changes will be effective from Monday 21 June.
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