LONDON Feb 28 Outsourcing company Capita and
phone retailer Dixons Carphone could exit Britain's blue-chip
index when the index provider FTSE Russell, a subsidiary of
London Stock Exchange Group, releases the results of its
index reviews on March 1.
Following steep declines in their share prices the two
companies are currently the smallest, by market value, on the
index, and risk demotion from FTSE 100.
The third-smallest, budget airline Easyjet, whose
shares have fallen more than a third in the past year, is also
eligible for potential demotion, according to an indicative list
from FTSE Russell issued on Tuesday.
Capita first entered the FTSE 100 in 2000, but was in the
mid-cap index from 2003 to 2004. Easyjet joined the large-cap
index in 2013.
Mid-cap investment trust Scottish Mortgage, pest
control company Rentokil Initial, and packaging firm DS
Smith are in-line for potential promotion based on
their latest market values.
Earlier this month, Societe Generale saw Capita shares
facing the biggest risk of getting pushed into the midcap index
For the UK bluechip index, companies fall to 111th or lower
in a ranking by market values on the review date could be
deleted to be replaced by the largest non-constituents.
Changes to the indexes are made effective after market close
on March 17. The index provider uses the market capitalisation
of companies at close of trading on Feb. 28 to determine the
changes, if any are made.
The increasing popularity of exchange-traded funds (ETFs)
has lent greater importance to the constitution of major
benchmark indexes and led to index rebalancing days becoming
among the busiest across major markets as ETFs tweak holdings to
match the index they track.
(Reporting by Helen Reid, Editing by Vikram Subhedar)