Updating with analyst comment on Schroder Asia Pacific.
The FTSE Group's quarterly review will see Royal Mail (RMG) and Ashtead Group (AHT) promoted to the FTSE 100 from next Friday, while Croda International (CRDA) and Vedanta Resources (VED) drop down to the FTSE 250.
Joining the UK mid-cap index are Carphone Warehouse (CPW), Foxtons (FOXT), Grafton (GFTU), JD Sports Fashion (JD.), Merlin Entertainments (MERL) and investment trust Riverstone Energy (RSE). These additions will take place on December 20 and will force the demotion of Carpetright (CPR), Chemring (CHG), Dialight (DIA), Greggs (GRG), Hochschild Mining (HOC), John Menzies (MNZS) and Schroder Asia Pacific Fund (SDP).
For the latter, investment trust Schroder Asia Pacific, the immediate likely impact is a widening of the discount as tracker funds sell out and there is excess supply of shares in the market, said Morningstar director of closed-end fund research Jackie Beard. "If performance is strong then the discount effect should be short-lived as savvy investors will take the opportunity to top up their holdings," Beard added. The trust is rated Silver by Morningstar analysts.
The changes announced this Wednesday will take effect after the market close on Friday December 20, and will take effect from the start of trading on Monday December 23.
The FTSE 100 Index will see the following changes (in alphabetical order):
Entering FTSE 100 Index |
Exiting FTSE 100 Index |
Ashtead Group Royal Mail Group |
Croda International Vedanta Resources |
The FTSE 250 Index will see the following changes (in alphabetical order):
Entering FTSE 250 Index |
Exiting FTSE 250 Index |
Carphone Warehouse Group Foxtons Group Grafton Group JD Sports Fashion Merlin Entertainments Riverstone Energy
|
Carpetright Chemring Group Dialight Greggs Hochschild Mining John Menzies Schroder Asia Pacific Fund |
FTSE operates a reserve list for the FTSE 100, which it resorts to in the event of a corporate action occurring between reviews, such as a merger, delisting or suspension. In such cases, the FTSE 250 constituent with the largest market capitalisation replace the outgoing FTSE 100 listing. The new reserve list for the FTSE 100 with immediate effect is:
- 3i Group (III)
- Berkeley Group Holdings (BKG)
- Direct Line Insurance Group (DLG)
- Inmarsat (ISAT)
- Merlin Entertainments
- Taylor Wimpey (TW.)
All changes from this review will be implemented at the close of business Friday, 20 December 2013 and take effect from the start of trading on Monday, 23 December 2013.