Index reshuffle

Abrdn sneaks back into FTSE 100 with Weir

Abrdn: back in the big league

Scottish investment firm Abrdn defied earlier speculation that it would miss out on a return to the FTSE 100 by sneaking back in after a resurgent share price in recent weeks.

Glasgow-based engineering firm Weir Group has also been promoted to the blue chip index, after moving further into the mining technology sector during the pandemic and seeing its order book boosted.

Abrdn was relegated from the top index in September after the last quarterly review but its shares have risen strongly since then, raising its value from £3 billion to about £4bn.

Data from Refinitiv had suggested it would not make it into the list. Russ Mould, investment director at AJ Bell, said in a note earlier today that it appeared Abrdn had “fallen short in a bid for index promotion”.

But the Edinburgh-based company managed to make the cut when the FTSE Russell Group’s quarterly review was announced.

The ranking of companies in the London Stock Exchange is reviewed every three months, with the latest changes based on market capitalisations on 29 November. The changes will come into effect for this quarter on 19 December.

Harbour, described as a “yo-yo stock” because it has already been demoted and promoted this year, once again returns to the FRTSE 250 ranks.

Dechra Pharmaceuticals and private equity firm Intermediate Capital Group have also been knocked off the FTSE 100 after seeing their shares sag in recent months.

Specialist insurer Beazley is another company to have enjoyed a promotion following the reshuffle.

Beazley, which provides insurance from commercial spaceflight to aviation war cover, has pursued a more cyber-focused business and is involved in the first rocket launch on UK soil at SpacePort Cornwall, analysts said.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Volatile markets and concerns about the prospects for global growth are the headwinds driving changes in the FTSE 100.

“Harbour Energy has been sideswiped by the rumours and then confirmation of an increase in a windfall tax on North Sea oil and gas producers.

“Pleas from Linda Cook, chief executive of the company, for Chancellor Jeremy Hunt to look again at taxing profits went unanswered.

“Opportunities in the cyber world and the burgeoning space race look ripe for the picking for specialist insurer Beazeley which is set to enter the FTSE 100.”

Elsewhere, the FTSE Russell confirmed that Digital 9 Infrastructure and European Smaller Companies Trust were promoted to the FTSE 250 after recent strong performances.

They will replace Home REIT and Petrofac which have been relegated from the index.

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