ITV and Morrisons set to swap places in FTSE reshuffle
FTSE Russell will confirm the reshuffle of the UK’s top two market indexes on Wednesday.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.ITV looks set to continue its yo-yo trip in and out of the FTSE 100 next week, while takeover bids for Morrisons and Meggitt will push them back into the index.
FTSE Russell, the arbiter of who gets to stay in the UK’s biggest stock market index and who drops out, will announce the latest reshuffle on Wednesday.
The decision will be based on the value of each company at the end of Tuesday.
As it stands now, analysts think that Morrisons and Meggitt are due a promotion into the index. They will pass ITV and Weir Group, which are expected to drop into the FTSE 250.
“Love Island may be back but broadcaster ITV looks likely to be dumped from the 100 after a short fling, despite the boost of Euros’ ad spend,” Nicholas Hyett, an equity analyst at Hargreaves Lansdown said.
ITV was relegated from the 100 in September last year, promoted again in June, and an 11% drop in its share price will likely see it demoted back to the 250 in September.
“Engineer Weir Group has also suffered a dip of 11% over the last three months and relegation would also represent a short stay in the premier index, having been promoted in March,” Richard Hunter, head of markets at Interactive Investor, said.
But unusually the normal relegation contenders will be joined by Just Eat Takeaway.com as the food delivery firm is still on the fence about where it wants to be based.
FTSE Russell said it will review Just Eat Takeaway.com’s position.
When London-listed Just Eat merged with Amsterdam-listed Takeaway.com, the plan was to de-list from the Dutch exchange.
However, in July the business said that it is still reviewing how it wants to be listed, and warned that it might be removed from consideration by FTSE Russell.
This will mean that Dechra Pharmaceuticals looks set to join the FTSE 100 instead, Mr Hunter said.
Dechra might prove a longer-term resident of the top league than its two other promoted peers.
Morrisons has a bidding war to thank for its promotion. Two private equity groups have been battling to take over the supermarket chain, sending its shares soaring.
This means that its stay in the FTSE 100 is likely to be short-lived as once a deal has been completed, Morrisons will become a private company and delisted from the FTSE.
The same goes for Meggitt, which is facing similar approaches from two different suitors.