Three firms are likely to be promoted to the ranks of the UK’s leading share index next week, according to indicative data from FTSE International.
Sports retailer Sports Direct Intl. PLC, drinks bottling firm Coca-Cola HDC AG and South African paper and packaging firm Mondi PLC will all become eligible to join the FTSE 100 index next week.
They are expected to replace three firms which will be demoted; oil services firm John Wood Group PLC, diversified miner Eurasian Natural Resources Corp. PLC and support services firm Serco Group PLC.
These three companies will join the FTSE 250, an index of the next largest 250 firms by market capitalisation.
The FTSE 100 index is made up of the most highly-capitalized companies listed on the London Stock Exchange.
If a company falls to 111th place or below, it is automatically thrown out of the index. A company which rises to 90th place or above is added.
It’s always good to keep track of these movements as they typically result in automatic purchases of the stocks by pension funds and other institutional investors.
