Finance group to be relegated from FTSE 100
Provident Financial’s departure from the FTSE 100 will be confirmed later today following the group’s catastrophic share price fall last week.
The sub-prime lender saw its shares crash by 75% in hours after revealing a major profits warning, the departure of its chief executive, an FCA investigation and the withdrawal of its dividend.
It ended the day down 66% – losing £1.7bn off its market value – in what is believed to be one of the biggest one-day falls by any FTSE 100 company.
Although its share price has edged up since last Tuesday’s meltdown, boosted by bargain hunters and a quick response from executive chairman Manjit Wolstenholme, Provident’s market value remains at just over half what it was at the start of last week.
Its share price had already been under significant pressure, falling from above £30 three months ago, to £17.45 before its shares crashed. Last night it closed at 909p.
Its market value of £1.3bn puts it a long way outside the top 100, which are all worth more than £4.5bn, as the share index undergoes its quarterly review.
Provident, which has been in the FTSE 100 for less than two years, is expected to be replaced by NMC Health. The healthcare company has enjoyed a 22% rise in its value in the last three months and is now worth £5.4bn.
