FTSE reshuffle confirmed: G4S does a Newcastle United and bounces back into stock market premier league

William Turvill
Follow William
Newcastle United fans
Newcastle United recently bounced back into the Premier League following relegation (Source: Getty)

The London Stock Exchange has confirmed that security giant G4S and real estate investment trust Segro have been promoted into the FTSE 100, with Hikma Pharmaceuticals and Intu Properties heading down into the FTSE 250.

The shake-up, which is active from 19 June, marks a Newcastle United-style bounceback for G4S, which was relegated from the blue-chip index in December 2015.

AJ Bell analysts noted that the “dramatic return”, helped by new contract wins, could offer hope to the likes of fellow outsourcing giant Capita (Sunderland?), which was ejected from the FTSE 100 in March.

Read more: Barclays up to third in the FTSE 100 broking rankings

Like newly-promoted Brighton and Hove Albion, Segro has been on the path to promotion for some time, with AJ Bell pointing back to the firm’s 2009 acquisition of Brixton.

Jordanian company Hikma has suffered a tough year and goes down to the FTSE 250 after entering the top division in March 2015.

On the other big demotion, AJ Bell said: “Intu Properties’ shares are languishing back near the lows reached in the immediate aftermath of the UK’s vote on EU membership.

“Even a first dividend increase in a decade hasn’t helped the stock, where sentiment is beset by fears over what Brexit and a weaker pound could do to UK consumer confidence and spending power, as well as the havoc being wrought upon bricks-and-mortar retailers by their online rivals.”

Read more: G4S shares rise as it unveils a nine per cent boost in revenue

Russ Mould, investment director at AJ Bell, commented: “A market capitalisation of around £5 bn is now the minimum required to gain entry to the FTSE 100 and the index promotions and relegations highlight the importance of consistent growth and the ongoing battle between clicks and bricks within the retail industry.”

Elsewhere, Debenhams will be demoted from the FTSE 250 along with Allied Minds, AO World, BH Macro, Keller and SVG Capital.

Bill Ackman’s newly-listed Pershing Square Holdings will be moving into the FTSE 250 along with Coats Group, FDM Group Holdings, Melrose Industries, Sirius Minerals and TBC Bank Group.

Related articles