Tuesday 1 June 2021 11:44 am

Sun shines on FTSE 100 amid reshuffle as ITV aims for prime-time slot

The sun is shining on the FTSE 100 with the index receiving an early summer boost pushing it firmly above the psychologically important 7,000 mark.

As the global growth recovery story unfolds, miners in particular are on the front foot today, as high demand for metals in particular push prices higher.

Anglo American and Rio Tinto are top of the risers board, surging by around 4 per cent in early trade, while Glencore and BHP Billiton were up by around 3.5 per cent.

Royal Mail’s new chapter in the FTSE 100 begins with a fresh upwards march of its share price, rising in early trade by 3 per cent.

“It was a slam dunk new entry, after opening a bulging sack of profits and headed into the top flight at the end of last week, ahead of the main re-shuffle later today,” commented Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, this morning.

“It regained the coveted position early with the deletion of RSA Insurance Group, following its takeover,” she said.

The other FTSE cards will be shuffled later based on closing prices at the end of trading.

ITV

“ITV is now looking like a highly likely contender to regain its prime-time slot following a recovery in advertising spending. Its share price has risen again today by 1.8 per cent, increasing expectations that it will make it back into the top flight,” Streeter added.

The Love Island broadcaster’s revenue plunged after the hit show was cancelled and episodes of the programme were scaled back during the pandemic but marketing spend is ramping up once again. 

“There are also hopes for a significant rebound in its Studios business, where it produces content for others, to capitalise on the ongoing streaming wars,” she said.

Renishaw has seen a lift in its share price today, but Streeter thinks it is highly unlikely to be enough to stop its slide back into the FTSE 250. 

“It was boosted into blue chip status by announcing its sale with impeccable timing for the last reshuffle. But the sale board is still up and the high price tag and strings attached to the deal seemed to have put off potential suitors,” she noted.

Darktrace

Cyber security firm, DarkTrace has seen another dart upwards today, with shares lifting 4 per cent.

Founded by US and UK intelligence agents in 2013, it uses machine learning to scan regular business operations and detect tiny irregularities.

“Investors are clearly hoping the global shift to digital should open up new opportunities and markets for DarkTrace as firms scale up their operations to meet demand, whilst trying to ensure their systems stay secure,” Streeter said.

Auction Technology Group has slipped today, with shares down by almost 2 per cent.

However,”when the hammer goes down on the reshuffle later today, the company is still highly likely to enter the FTSE 250 fray,” she added.

The Antiques Trade Gazette owner is an expert in online auctions and figures in its first results after listing in February indicated that there was still high demand for remote bidding despite the easing of pandemic restrictions.

Meanwhile, e-card retailer Moonpig is set to fly into the FTSE 250, after snuffling out a hefty valuation at its IPO launch. It’s been given another push today with shares up 2.5 per cent.

“By positioning itself as a digital sales platform, using data to predict consumer preferences, Moonpig has succeeded in positioning itself as a big e-commerce player, rather than an online card retailer,” Streeter explained.

Trust Pilot

The consumer reviews operator Trust Pilot has capitalised on the accelerated shift to digital during the pandemic and launched on the London market as part of the IPO gold rush.

“After a bit of a volatile start to trading, its shares have broadly risen over the past month, as investors assess not just its value as a reviews site but also the vast amount of data it holds on consumer behaviour,” Streeter said.

Its shares have fallen back a little this morning, but this should not blow its FTSE 250 journey off course.

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