Daily Mail

ITV loses the plot as it drops out of FTSE 100

- by Francesca Washtell Business · Europe Stock Markets · FTSE 100 · Finance · Stocks & Markets · Investing · Europe-Middle East Stock Markets · Financial Markets · The Financial Times Share Index · London · Iceland · B&M European Retail Value S.A. · Hammerson · British Land · CMC Markets · Holiday · United States of America · United Kingdom · Go-Ahead Group · Mr Kipling · Premier Foods · Charterhouse · Warburg Pincus

ITV will lose its place in Lon­don’s most pres­ti­gious stock mar­ket in­dex after a slump in advertisin­g this year sent its share price into free fall.

The Love Is­land and I’m A Celebrity broad­caster, which is also cel­e­brat­ing its 65th birth­day, will be rel­e­gated from the FTSE 100 to the FTSE 250 in a reshuf­fle later this month after its stock closed down 6pc, or 3.66p, to 57.06p – valu­ing it at £2.3bn.

Shares have fallen by more than 62pc this year as cash- strapped com­pa­nies have reined in their mar­ket­ing bud­gets, slash­ing advertisin­g and wip­ing out a huge chunk of ITV’s in­come stream.

Adding more pres­sure, the pan­demic has also dis­rupted the pro­duc­tion of pro­grammes.

The de­ci­sion by FTSE Rus­sell about which com­pa­nies will be in­cluded in the FTSE 100 and 250 in­dices is based on clos­ing share prices last night. In ITV’s place, dis­count re­tailer

B&M (up 0.5pc, or 2.2p, to 473.8p) will en­ter the blue- chip in­dex after sales boomed dur­ing lock­down, according to anal­y­sis by AJ Bell based on SharePad data.

Be­lea­guered shop­ping cen­tre­owner Ham­mer­son (down 7.1pc, or 3.43p, to 45p) will slide out of the mid- cap in­dex, as will bus op­er­a­tor Go-Ahead Group (up 0.7pc, or 4.5p, to 663.5p).

Ham­mer­son’s ri­val shop­ping cen­tre-owner Bri­tish Land (down 4.1pc, or 15.1p, to 350.6p) could also be on the brink – but it is FTSE Rus­sell data tonight that will con­firm that either way.

But other com­pa­nies such as trad­ing plat­form CMC Mar­kets (down 0.2pc, or 0.5p, to, 319.5p) and Mr Ki­pling-maker Premier

Foods (up 1.2pc, or 1p, to 86p) will be crack­ing out the cham­pagne, as they will be pro­moted from the small-caps. An­other com­pany in the mood for cel­e­brat­ing last night was over-50s in­sur­ance and cruise op­er­a­tor Saga.

In­vestors cheered the news that for­mer boss Roger De Haan will re­turn to the com­pany to steer it through the Covid cri­sis and over­see a £150m fundrais­ing to help bol­ster its books.

De Haan, who was chief ex­ec­u­tive be­fore the com­pany was sold to pri­vate eq­uity group Char­ter­house in 2004, has promised to in­vest £100m out of the £150m it is seek­ing to raise.

Shares surged by 32pc, or 4.35p, to 17.96p on the dou­ble-whammy of good news.

The wider Foot­sie started the week on the back foot, fall­ing 1.7pc, or 101.52 points, to 5862.05 points after the Bank Hol­i­day week­end – de­spite notch­ing up its best Au­gust since 2014. The

FTSE 250 fell 1pc, or 183.73 points, to 17604.6. Mean­while, the blue chip Foot­sie in­dex was held back by a rise in the value of the pound, which climbed above $1.34 for the first time since De­cem­ber. The dol­lar has been lag­ging for sev­eral weeks, partly as traders bet that the US re­cov­ery from the pan­demic will be slower than that of the global econ­omy.

When the pound grows stronger it weighs on the dol­lar- de­nom­i­nated earn­ings of overseas multi­na­tional com­pa­nies that are listed on the Foot­sie.

Else­where, data showed Bri­tish fac­to­ries have be­gun to claw back some of the ground lost dur­ing lock­down. The man­u­fac­tur­ing pur­chas­ing man­agers’ in­dex in Au­gust rose when com­pared with July, with com­pa­nies re­port­ing de­mand has picked up from cus­tomers in the UK and overseas. Shares in break­down group the

AA went into re­verse – fall­ing 5.8pc, or 2p, to 32.7p – after it was granted an ex­ten­sion for po­ten­tial takeover of­fers un­til Septem­ber 29 by reg­u­la­tors.

It has been ap­proached by a clutch of pri­vate eq­uity firms, in­clud­ing War­burg Pin­cus and Tower­brook Cap­i­tal Part­ners, about a deal to take it pri­vate.

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