Housebuilder set to be relegated from FTSE 100
The weak foundations of the residential property market are likely to relegate housebuilder Persimmon from the FTSE 100, ending its 10-year stay in the elite rankings of the UK’s largest listed companies.
The York-based developer has lost 70% of its market value since April 2021 and last night’s closing share price of 986p valued the company at £3.15bn.
Persimmon’s impending demotion would leave just one Yorkshire-headquartered company in the FTSE 100 – Croda International, currently ranked 57th, with a market cap of £7.3bn.
Abrdn, Johnson Matthey and RS Group are also in danger of relegation next week, with their values having dropped below £3.5bn.
Pharmaceuticals business Dechra is expected to be promoted to the FTSE 100, although this is likely to be shortlived because it has agreed a £4.5bn takeover deal from Swedish private equity firm EQT.
Other companies expected to be promoted are Marks & Spencer, returning after four years, Diploma and Hikma Pharmaceuticals.
The membership of the FTSE 100 and FTSE 250 is reviewed quarterly, with the next reshuffle based on company values at the end of Tuesday, August 29.
Bradford-based Vanquis Banking Group is set to be relegated from the FTSE 250 after losing more than half of its value in two months, putting it in last place.
Seven companies are in line for promotion to the FTSE 250 – 888 Holdings, Breedon Group, CAB Payments Holdings, Ceres Power Holdings, Foresight Group Holdings, Moonpig Group, and Tullow Oil.
They would replace Capita, CMC Markets, Liontrust Asset Management, Molten Ventures, Synthomer, and Warehouse REIT, as well as Vanquis.
The final decisions on the quarterly reshuffle will be announced after the markets close next Wednesday.
