Morrisons set for Footsie relegation as it trails rivals

SUPERMARKET Morrisons is set to fall out of the FTSE 100 for the first time in five years after straggling behind rival grocers during the pandemic.

Its shares closed down 0.4pc, or 0.6p, to 169.4p last night – adding to a slide over several days that will send it out of the blue- chip index and into the mid-cap market in the forthcoming reshuffle.

Although sales have been on the up and it has managed to slightly increased its share of the market – to 10.3pc in the 12 weeks to February 21 – many believe it has lagged behind tech- savvy rivals over the past year.

It means Morrisons faces its second spell out of the blue- chip index, the last time was in 2016.

Water firm Pennon, which closed down 0.5pc, or 4.6p, at 917.6p is also in the firing line.

In their place, holiday firm Tui, down 3.6pc, or 16.1p, at 436.7p, and engineer Weir Group, off 2.9pc, or 57.5p, at 1948.5p, are expected to move up from the mid-caps. But the most noticeable mover is Dr Martens, still revelling in the success of its blockbuster float in January, which is forecast to take a step into the FTSE 250.

Many speculated the group, whose shares fell 1.6pc, or 7.7p, to 482.3p, could have gone straight to the FTSE 100, but Tui is likely to pip it. It was a mixed day for the major indexes, with the FTSE 100 rising 0.4pc, or 25.22 points, to 6613.75, while the FTSE 250 fell 0.2pc, or 43.55 points, to 21177.91.

In a busy day of financial results, investors cheered better-thanexpected full-year figures from global recruiter Robert Walters. Profits slumped by 75pc to £12m as companies worldwide implemented hiring freezes. But vaccine rollouts and indications that things are picking up in Asia, its biggest market, helped shares rise 6.2pc, or 32p, to 552p.

Traders revved up Lookers by 4.5pc, or 1.8p, to 42.2p after City regulators closed an investigation into the car dealer without imposing fines.

It had ringfenced £10.4m to pay a penalty but the Financial Conduct Authority instead told it off for its ‘historic culture, systems and controls’. The probe was opened in 2019 after red flags were raised internally about its sales process, prompting a management clearout and a £19m adjustment to results last year.

Travis Perkins, on the other hand, slid 3.3pc, or 48.5p, to 1429.5p, after it posted a £7.7m loss and declined to hand shareholders a dividend.

Sales across the group dropped 12pc to £6.2bn last year – but surged by almost a fifth at its DIY chain Wickes as the extra time spent at home during the pandemic prompted cooped-up Britons

to spend millions renovating their houses. Despite this trend, Travis Perkins has restarted plans to demerge Wickes so it can focus on construction trade sales. It expects Wickes to be a separate listed company by the summer.

Private jet group Signature Aviation said flights were still down in February amid second waves and lockdowns – but by far less than it saw last spring.

It was virtually flat, with stock trading down 0.1pc, or 0.3p, to 398.9p, despite a £17m loss as the takeover target’s share price has stayed around the level of a 411p per share bid last month.

Private equity giant Blackstone, Edinburgh Airport-owner Global Infrastructure Partners and Bill Gates’ investment vehicle Cascade await a sign-off from investors for the joint £3.5bn offer.

Elsewhere in aviation, defence contractor Meggitt met a frosty reception after it signed a ‘large, multi-million pound’ deal to supply Boeing’s 737 Max jets with cockpit indicators. It closed down 2.5pc, or 11p, at 429.7p.