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Opinion

Stocks set to benefit from the FTSE reshuffle

Stocks set to benefit from the FTSE reshuffle
February 8, 2016
Stocks set to benefit from the FTSE reshuffle

The table shows the smallest five FTSE 100 constituents as at Friday's close and the largest five FTSE 250 constituents along with some details of the price momentum experienced by the stocks over recent periods. The FTSE 100 shares are ordered by smallest (most likely to be relegated) to largest whilst the 250 shares are ordered from largest (most likely to be promoted) to smallest.

The conventional wisdom is that those companies getting promotion into the blue chip index should receive a share price fillip from tracker fund buying, although, markets are so volatile at the moment that it could be a bigger ask than usual to guess where things will be at the start of next month when the reshuffle takes place.

FTSE 100 light weights
NameTIDMMkt Cap3-mth Mom1-mth Mom1-wk Mom
Sports Direct IntSPD£2,350m-45.8%-12.2%-8.6%
Aberdeen Asset Mgnt ADN£3,114m-33.1%-6.7%-5.1%
Smiths GroupSMIN£3,704m-8.3%2.2%-2.4%
intu properties INTU£3,844m-15.3%-4.8%-4.2%
3i  III£4,002m-16.6%-7.9%-6.0%

FTSE 250 heavy weights
NameTIDMMkt Cap3-mth Mom1-mth Mom1-wk Mom
Paddy Power PPB£10,701m-10.3%-23.6%-33.4%
RexamREX£4,213m7.8%-1.0%-1.2%
Wm. MorrisonMRW£4,081m2.0%13.8%-1.4%
Informa INF£3,983m1.0%-1.1%-6.7%
Auto Trader  AUTO£3,864m-7.4%-18.1%-10.0%

source: S&P CapitalIQ