Resolution was the only blue chip stock below 111th position in a ranking based on market capitalisation, according to index compiler FTSE, setting it up for relegation from the blue chip index.
The insurance company’s share price has fallen by around 20 per cent since the beginning of the year, having first been offered to investors at 100p in a December 2008 flotation that raised £600m to fund takeovers.
Investec was the highest ranking mid-cap stock, being above 90th place based on Tuesday’s closing prices and putting it in line for promotion. Shares have jumped 22 per cent this year, riding on the coat-tails of the equity market’s recovery, although nine-month results from the company at the end of January were pretty static.
However, Goldman Sachs and Morgan Stanley have upgraded ratings for Investec in the wake of the numbers, saying there was more conviction that the group’s earnings will trough in 2010 as impairments peak.