Morrisons set to return to the FTSE 100 after share price surge

SUPERMARKET Morrisons is set for an immediate return to the FTSE 100 after a strong surge in its share price in the last quarter.

The retailer announced a tie-up with online retailer Amazon yesterday, which gave its share price a late boost before last night’s cut off for the quarterly review

The grocer was forced out of the rankings at the last quarterly review but solid trading over Christmas and full-year results which suggested the company was beginning to see the results of the big changes it made in 2015 has given investors renewed confidence in the Bradford group.

Yesterday its closing share price was 203.1p. This was a far cry from less than three months ago, when the supermarket chain’s share price dipped to 147.9p, a 12-year low for the Bradford-based business.

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Companies’ market capitalisation value at the close of trading last night is the factor used to determine which are included in the FTSE 100 and FTSE 250 indices. To earn promotion, companies that are outside the FTSE 100 must have a value that places them in the top 90 companies.

One month overview of the Morrisons share price, courtesy of Morrisons Investor Relations

In December Morrisons was demoted into the FTSE 250 after a 14-year run among the stock market’s index of largest companies. The supermarket group was replaced by another Bradford company, financial services provider Provident Financial.

The newly-merged betting company Paddy Power Betfair and private hospital group Mediclinic, which also recently completed a merger, are also expected to enter the FTSE 100.

They will replace Sports Direct, Aberdeen Asset Management and Hikma Pharmaceuticals whose relegation to the FTSE 250 is expected to be confirmed later today.

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