Marks and Spencer Group PLC (LSE:MKS) is poised to regain its place on London’s blue-chip index after a four-year absence thanks to impressive share price gains this year.
Come September’s reshuffle, M&S will re-emerge on the index, alongside Dechra Pharmaceuticals PLC (LSE:DPH), Diploma PLC (LSE:DPLM) and Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF), according to benchmark provider FTSE Russell.
They will replace Abrdn PLC (LSE:ABDN), Johnson Matthey PLC (LSE:JMAT), Persimmon PLC (LSE:PSN) and RS Group PLC (LSE:RS1), with confirmation of the changes coming after markets close on 30 August.
M&S has enjoyed a strong first half of this year, with a lift to interim guidance earlier this month only adding fuel to share price gains of 71% since December.
Having struggled in the wake of the pandemic, the retailer made new appointments last year in the form of co-chief executive Katie Bickerstaffe and chief financial officer Jeremy Townsend, which helped shift investor sentiment, according to analysts.
An unexpectedly large improvement in interim profit margins and overall strong performance in its clothing business then saw the stars align for M&S, which has found itself with a market cap of £4.3 billion heading into September.
On the other side of the coin, housebuilder Persimmon is among those to have been hit by the UK’s souring property sector this year.
Year-to-date share price losses of over 22% have reflected deteriorating demand for housing stock on the back of higher interest rates on mortgages.
A profit warning from peer Crest Nicholson PLC (LSE:CRST) earlier this week seemed to add further fuel to the fire, with worse-than-expected summer trading for the housebuilder prompting a sector-wide selloff.
Chemical specialist Johnson Matthey, electronics provider RS Group and investment firm Abrdn will join Persimmon in slipping from the key index into the FTSE 250.
FTSE 250 additions:
- 888 Holdings
- Abrdn
- Breedon Group
- CAB Payments Holdings
- Ceres Power Holdings
- Foresight Group Holdings
- Johnson Matthey
- Moonpig Group
- Persimmon
- RS Group
- Tullow Oil
FTSE 250 deletions:
- Capita
- CMC Markets
- Dechra Pharmaceuticals
- Diploma
- Hikma Pharmaceuticals
- Liontrust Asset Management (LSE:LIO)
- Marks & Spencer Group
- Molten Ventures
- Synthomer (LSE:SYNT)
- Vanquis Banking Group
- Warehouse REIT