IF SERCO’S board had released their company’s results today then they would have been leading a mid-cap FTSE 250 company.
Instead the outsourcer’s four year run as a member of the prestigious FTSE 100 is expected to continue for at least another three months.
This is because today’s FTSE quarterly review – which decides whether companies should be included in the blue chip index – is based on last night’s market capitalisation.
At the start of play yesterday Serco were sitting in one of the relegation spots. But the company’s stunning results provided a lifeline, pushing up its share price by nine per cent and ensuring that large tracker funds will continue to hold the company’s stock.
During yesterday’s trading Serco leapfrogged shopping centre business Intu Properties, which is likely to be demoted to mid-cap status as a result.
The most likely candidate for the other relegation spot is miner Kazakhmys.
New entrants to the top level of British business will be confirmed today but are expected to include EasyJet and London Stock Exchange Group.