FTSE 100 quarterly reshuffles: Anglo American share price falls as it risks being booted out of blue-chip index in March

 
Jessica Morris
Follow Jessica
(FILE) A couple of gigantic Komatsu 930,
Anglo has been hurt by plunging commodity prices (Source: Getty)

Stricken mining firm Anglo American risks being booted out of Britain's blue-chip index at its quarterly review next month.

The South African miner's self-described "drastic" turnaround plan unveiled in December has so far failed to reassure the market. It included scrapping its dividend, gutting assets by 50 per cent and shrinking its employee count by 60 per cent.

"Anglo has been out of favour which ... may force the issue," Macquarie analyst Alon Olsha told Reuters, when asked if the company could hold onto its place in the index.

"Anglo is facing very challenging conditions and the market is questioning the credibility of the restructuring plan," he added.

The company, which was the worst performer on the FTSE 100 last year, has been hurt by an economic slowdown in China, its biggest consumer, as well as a supply glut. Its shares closed down 7.99 per cent to 252.15p per share today.

Anglo is due to release its preliminary results on February 16.

Related articles