Two companies are on track to be promoted to the FTSE 100 this week as the UK’s main stock indices undergo a reshuffle.
Residential property development companies Barratt Developments and Taylor Wimpey are both in line to be moved on to the FTSE 100 index from their current position on the FTSE 250.
The FTSE 100 is list of the 100 largest companies listed on the London Stock Exchange (LSE).
The firms would replace engineering firm IMI and oilfield services provider Petrofac, whose share prices have been hit by the oil price slump. Currently, the list is only indicative with the final decision set to be taken tomorrow.
IMI and Petrofac would be relegated to the FTSE 250, the 101st to the 350th largest companies listed on the LSE.
Designer shoe maker Jimmy Choo, which recently floated, and Spirit Pub Company are set gain entry to the FTSE 250. There are also FTSE 250 companies that are eligible for potential demotion to the FTSE small-cap index – the 351st to the 619th largest listed companies on the London Stock Exchange.
These include oil company Enquest, industrial manufacturers Fenner, iron ore producers Ferrexpo, estate agents Foxtons, Hochschild Mining and Spirent Communications.
In order to balance the demotion of six firms to the FTSE small-cap index, some companies may be moved up into the FTSE 250 index.
These could potentially be Allied Minds, CLS Holdings, Game Digital and Greggs.
The final decision will be announced after the markets close on Wednesday 3 December and made effective after markets close on Friday 19 December – from the start of trading on Monday 22 December.
The movements are subject to the final decision and approval of the FTSE EMEA (Europe, Middle East and Africa) Committee.