Getting latest data loading
Home / Blog / blog / Reshuffle kerfuffle on the FTSE?

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Reshuffle kerfuffle on the FTSE?

The Tuesday before the first Friday, of the last month of the quarter. That’s the week after next. But why is it so important?

It’s the 4th of June – the cut-off for determining who will be promoted to and demoted from both the FTSE250 (mid-cap index) and FTSE100 (bluechips) indices on 24 June.  The FTSE quarterly review, or reshuffle. So who’s in-line for a move up or down?

First up for promotion are JD Sports Fashion and Aveva (industrial engineering/software)in 71st and 77th position by market capitalisation on the FTSE350 (the FTSE100 and 250 combined). This is comfortably above the 90th place threshold for auto-promotion thanks to gains of 76% and 42% year-to-date, respectively.

Interestingly, there is nobody in-line for auto-demotion, however, easyJet (#110) is flirting with the 111th place threshold.

But as an index of 100 names, the two auto-promotions to the FTSE100 requires two demotions. As it stands, easyJetMarks & Spencer (#103), Just Eat (#100), Hikma (generic drugs; #99), Sainsbury (#98), Direct Line (insurance; #97), TUI (travel; #96) and ITV (#95) are in the firing line.

To avoid, demotion, easyJet would need to rally 14%, and M&S by 5%. Then we’d be discussing some of the other above names. But nearly all are household names. Some investors may end up surprised that their FTSE100 investment is now a FTSE250 holding.

To miss out on promotion, JD Sports would need to fall by a rather significant 24%, and Aveva by 17%. Unlikely, but the compliance-friendly devil’s advocate in me must highlight JD sports was scheduled to publish results today. Should they be delayed or really disappoint. Well you know what could happen. Same applies to Aveva which reports next Wednesday (29th).

That’s it for the big boys. At the tail end of the FTSE350, likely contenders for a promotion from the FTSE Small caps include 4imprint and Paypoint, both 4-5% above the #325 threshold for auto-promotion. It is likely these will be balanced by demotions from the FTSE250 of Indivior and Stobart, both of which sit 26% and 33%, respectively, below the threshold.

It’s not a given, but these names could see increased share price volatility next week. I mean that in a good way, in terms of more activity, offering more trading opportunities. Because FTSE100 index trackers may want/need to own a certain sports fashion chain and industrial software engineer to replicate the index. Likewise, they may need to dump a certain Airline and a well-known Retailer. And there will be media attention around those names, which may in turn fuel additional interest.

Nothing’s in stone. The numbers could all be different by this time next week. But you have to take a snapshot and make a decision some time. Now’s a good time to know who’s in-line to be able to act next week. Where do you think those names will finish? Do you own any of them? Do you want to?

Whatever you trade, and however you trade it, get access to our research Gold Pass. That we we can provide you with daily actionable trade ideas including Ranges, Breakouts, Bounces and much moreAs well as helping keep you up to date with things like the FTSE quarterly reshuffle.

Enjoy your long weekend.

Mike van DulkenHead of Research, 24 May 2019

 

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
EXCELLENT

4.81 Average

156 Reviews

George

I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 7 months ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 10 months ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 1 year ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 1 year ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 1 year ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 1 year ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 1 year ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 1 year ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 1 year ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 1 year ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 1 year ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 1 year ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 2 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 2 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 2 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 2 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 2 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 2 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 2 years ago

.