“Unusually the quarterly reshuffle of their FTSE 100’s members based on their market capitalisations has left the UK’s headline index unchanged, something that last happened in March 2006,” says Russ Mould, AJ Bell Investment Director.
“However, changes in the FTSE 250 and AIM indices, as well as the names jockeying for entry to the FTSE 100 show that some sectors appear to be on the up. Oil and oil-related firms appear to be back in vogue, after crude’s recovery from the lows of early 2016, while video game specialists also look to be an area of interest for investors right now.
“Oil equipment experts Weir and Wood are pressing for a return to the FTSE 100, petrol stations giant Vivo, the firm behind the Shell brand across Africa, is entering the FTSE 250, while Diversified Gas & Oil is stepping into the AIM 100 after its acquisition of shale assets in the Appalachians in the USA.
“Also among the smaller caps, two video gamers are joining the AIM 100, Team17 and Codemasters.
“No FTSE 100 firm fell to 111th in the market capitalisation rankings – a value of around £4.1 billion – to merit automatic demotion to the FTSE while no mid-cap firm made it to 90th in the list to earn automatic promotion.
“Engineer Spirax-Sarco fell just short of a move into the top flight, as its £5.2bn market cap ranks it 92nd and just short of Taylor Wimpey and Barratt Developments, whose market valuation is currently some £5.4 billion.
“Other firms knocking on the door of the FTSE 100 include former members Wood, Hikma and Weir, as well as non-life insurer Hiscox and JD Sports.
“Those closest to the drop this time were the newest entrant Rightmove, Direct Line Insurance, Royal Mail and Severn Trent. All of them could be looking over their shoulders again at the time of the next reshuffle in December.”
