ENERGY firms Essar and Cairn look set to crash out of the FTSE 100 in next week’s index reshuffle, based on their closing prices yesterday.
Essar, which has seen its share price slump nearly 60 per cent in the last three months on worries about tax and delays at its Indian plants, fell more than five per cent yesterday to leave its market capitalisation at a relatively paltry £1.6bn.
And while Cairn shares have gained about five per cent since the FTSE’s last quarterly review, firms in the FTSE 250 index have overtaken it.
Hargreaves Lansdown, which looked to be at risk of losing its place, is likely to stay in the blue-chip index after its shares rallied 3.1 per cent in heavy trading yesterday – one of just two rising stocks in the FTSE 100.
The changes will be formally announced by the FTSE compiler after the market close today, after being confirmed by a FTSE committee using yesterday’s closing prices. They will be made effective after the market closes on Friday 16 March.
Aberdeen Asset Management is set to enter the top index for the first time in its history, despite a wobble last week when its shares tumbled five per cent, as is chemicals firm Croda.