Compass replaces Dixons in FTSE reshuffle

COMPASS, the fast-growing catering group was promoted to the FTSE- 100 index of leading shares yesterday after the quarterly meeting of the FTSE Actuaries committee.

Compass replaces electrical retailer Dixons Group, which drops out after falling to be ranked Britain's 121st largest-listed company by market value as at the close on 10 March.

The company will officially start trading as a blue chip stock on 23 March.

Misys, the computer software company, had been tipped for inclusion but missed out by one place.

Misys, which is the 92nd-largest group, remains on the reserve list for inclusion in the FTSE 100 at the next quarterly review on June 10. The others are TI Group, the engineer, Northern Rock, the demutualised building society, Southern Electric Plc, the utility, Provident Financial, the credit group and RMC Group, the building materials company.

Among changes to the FTSE 250 index of next-tier companies, Body Shop International, whose shares are close to a five-year low, was excluded.

In the FTSE 250 and FTSE 350, Yule Catto & Co, FI Group, More Group, WS Atkins Group, Shire Pharmaceuticals, Parity and Merchants Trust are all included.

The Committee also approved the inclusion of the new issues Monsoon and

Cortecs PLC in the FTSE SmallCap & FTSE All-share with effect from 23 March

1998.

The Misys, which provides computer software to banks and insurance companies and was only founded nine years ago, now lies just outside the top 100 and just missed out on becoming the first information technology to join the blue chip list.

The changes in membership of the FTSE-100, or Footsie as it is known among the City fraternity, reflect the shifting patterns in the UK economy.

The overwhelming trend is a shift towards fast growing and often youthful services companies and away from the declining traditional manufacturing groups which were such powerful stock market performers in the mid-1980s.