Market move

Abrdn’s demotion from FTSE 100 confirmed

Abrdn has seen its shares slump in value

Abrdn’s ejection from the FTSE 100 index was confirmed last night as its falling share price left it ranked as Britain’s 118th largest listed company.

The Edinburgh-based company last year changed its name from Standard Life Aberdeen and was formed by a merger of Standard Life – a member of the FTSE since the demutualisation and flotation of the company in 2006 – and Aberdeen Asset Management, a FTSE 100 member from 2012 to 2016.

Abrdn’s shares have declined by 44% in the past year and by 65% since the merger, causing the company’s value to fall from £11bn at that time to £3.2bn, raising the prospect of a takeover bid emerging.

Chief executive Stephen Bird has blamed the firm’s slower than expected growth on ‘market turbulence’, more specifically geopolitical uncertainty, rocketing inflation and worries about the global economy.

Abrdn is likely to be joined in the FTSE 250 by Howden Joinery and Hikma Pharmaceuticals, while F&C Investment Trust and Convatec, the colostomy bags company, will be promoted into the blue chip index.

Mike Ashley’s Frasers Group, owner of Sports Direct and House of Fraser, appears to have just missed out on elevation to the premier list.

The changes will be confirmed by FTSE Russell after the close of trading today.

Listed companies at 90th or higher in ranking by market value last night join the FTSE 100 while those ranked 111th or lower are automatically expelled.

See also: Abrdn’s slide will have predators circling

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.