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OPINION

Stocks hoping for a FTSE 100 promotion bounce

Stocks hoping for a FTSE 100 promotion bounce
January 31, 2017
Stocks hoping for a FTSE 100 promotion bounce

The table shows the smallest ten FTSE 100 constituents (potential candidates for demotion) and the largest ten FTSE 250 constituents (promotion hopefuls). For each stock there is also information about recent share price moment to give an indication of which stocks are racing for the exit or entrance, and those making their move at a more languid pace. The FTSE 100 shares are ordered by smallest (most likely to be relegated based on current market cap) to largest while 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 with the reverse true of stocks being demoted.

PROMOTION HOPEFULS

NameTIDMMkt Cap3-mth Mom1-mth Mom1-wk Mom
Investec INVP£5,277m12.9%4.9%-0.7%
Scottish Mortgage Inv Trst SMT£4,570m0.1%6.7%1.7%
WeirWEIR£4,460m18.6%6.7%2.1%
DS Smith SMDS£4,160m10.8%7.9%2.1%
Rentokil Initial RTO£4,152m-1.7%1.4%2.6%
G4S GFS£3,930m13.9%7.7%1.0%
BerkeleyBKG£3,927m18.0%-0.2%-1.0%
SEGRO SGRO£3,851m4.7%0.2%-0.2%
Auto TraderAUTO£3,819m2.6%-5.6%-0.3%
Polymetal IntPOLY£3,818m0.6%4.3%-5.3%

DEMOTION PROSPECTS

NameTIDMMkt Cap3-mth Mom1-mth Mom1-wk Mom
Capita CPI£3,390m-15.4%-5.8%-4.2%
intu properties INTU£3,618m-3.7%-5.5%-2.4%
Dixons Carphone DC.£3,648m-1.0%-10.9%-6.0%
easyJet EZJ£3,858m1.2%-4.1%-10.5%
Provident Financial PFG£3,892m-10.6%-6.7%-4.4%
Royal Mail RMG£4,087m-17.4%-12.1%-0.9%
Hammerson HMSO£4,327m-1.9%-5.0%-0.9%
Croda IntCRDA£4,434m-3.0%6.4%1.3%
Hikma Pharmaceuticals HIK£4,450m2.4%-3.8%-5.5%
Babcock IntBAB£4,533m-10.8%-6.2%-4.2%

source: S&P CapitalIQ