Rightmove is set to face demotion from top FTSE rankings
PROPERTY WEBSITE Rightmove looks on course to be booted out of London’s blue chip share index this week after suffering from a stalling housing market and increased competition.
Rightmove is among candidates to be relegated from the FTSE 100 Index when the FTSE Russell EMEA Committee confirms the results of its quarterly review, according to The Share Centre.
Since hitting an all-time high in June, the stock has fallen 7 percent due to fears over the health of the property market and pressure from rivals such as Zoopla and Purplebricks.
Helal Miah, investment research analyst at The Share Centre, said Rightmove has suffered a “tumultuous year”, with intense competitive pressures leaving it in a “vulnerable position”.
He added: “A weak housing market in London and the South East and what the group describes as a ‘muted sentiment towards the UK property market’ continues to weigh.”
Worries over its prospects failed to ease despite interim results in July revealing a 10 per cent rise in revenues to £131.1 million at the property portal and operating profits up 12 per cent at £98.2 million.
Analysts cautioned that with estate agents under pressure, Rightmove’s future growth outlook might be limited.
Surveyors warned earlier this year that the housing market was seeing a decline in demand from buyers, while recent figures have confirmed the slowdown in London and the South East.