Late rally keeps Morrisons in the FTSE 100

MORRISONS has kept its place, just, in the FTSE 100 after a late rally in its share price saw it avoid being replaced in the index.

The companes within the indexed are reviewed quarterly and the Bradford-based supermarket group had been in danger of dropping down after a sustained drop in its share price throughout 2014 had seen the company’s value nearly halved.

Although it rallied over Christmas and with the appointment of its new chairman and chief executive, continued pressure within the sector had seen it fall back once again.

However some good news on Tuesday from retail analysts Kantar Worldpanel, which showed Morrisons was the only one of the big four to grow its sales as it ended an 18-month sales decline , induced an upswing in its share price that took it out of the FTSE 100’s relegation zone. Instead Aggreko will drop out and be replaced by Inmarsat.

Morrisons’ 14-year stay in the FTSE 100 depended on this timely rally, which saw its share price rise 3% on Tuesday, ahead of the cut-off at the close. The FTSE committee then met yesterday to confirm the data, which showed Morrisons market capitalisation, of £4.014bn, had finished just ahead of Aggreko at £3.979bn.

The supermarket is holding its AGM today, when its management is expected to come under pressure for the £3m-plus payout to former chief executive Dalton Philips, who was ousted in January.