anticipating the review of the FTSE 100 Index constituents

[tolland]

Hi all,

To begin, I am no expert on this so I am chucking this out there to get some feedback...

The review of the FTSE 100 components takes place on the wednesday after the first friday of December

And the rules state that FTSE100 constituents that have falled to market value rank 111th or below, and FTSE250 components that have risen to 90th or above with be promoted/demoted as appropriate...

So I did a quick list of the current state of the FTSE around the the levels where these criteria are hit, and came up with the following potential promotions;

78  	Pennon Group  	570.50p  	0.1885  	£1,993.11  	FTSE250
82 	Tate & Lyle 	417.00p 	0.2694 	£1,912.15 	FTSE250
86 	Home Retail Group 	204.25p 	-0.0922 	£1,792.18 	FTSE250
90 	Serco Group 	361.75p 	0.0358 	£1,758.96 	FTSE250

and the following potential demotions;

111  	Petrofac Ltd  	366.75p  	-0.1309  	£1,266.88  	FTSE100
116 	John Wood Group 	221.50p 	-0.1254 	£1,169.16 	FTSE100
120 	Invensys 	138.70p 	-0.079 	£1,110.88 	FTSE100
129 	Fresnillo 	123.50p 	-0.4147 	£885.69 	FTSE100

where Fresnillo looks to be sure for the drop given how far its market cap has dropped.

Previous demotions were;
Carphone Warehouse Group
ITV
Enterprise Inns
Ferrexpo

Going back to the June 08 review, these are the ones that got demoted;

Home Retail Group
Tate & Lyle
Alliance & Leicester
Persimmon

Tom

 

[tolland]

So the 4 candidates for demotions are all in (exposed to) commodity related sectors;
Petrofac - Oil Equipment Services & Distribution
John Wood Group - Oil Equipment Services & Distribution
Fresnillo - Mining
Invensys - Electronic & Electrical Equipment (The group operates in a range of industries, such as hydrocarbons, chemicals, oil and gas, telecommunications and pharmaceuticals.)

 

[Typo]

Try looking at:

UK Stock Challenge

and click on the 'FTSE Ranking' tab.

Anticipating the FTSE review is one thing, knowing how to capitalise on the information is another!