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Capita and Dixons Carphone could drop off the FTSE 100
February 28, 2017 / 3:42 PM / in 9 months

Capita and Dixons Carphone could drop off the FTSE 100

LONDON, Feb 28 (Reuters) - 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)

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