TOP NEWS: abrdn indicated to drop out of FTSE 100, F&C to join

Tue, 23rd Aug 2022 18:14

(Alliance News) - Almost 18 months after announcing a name change, abrdn PLC's blue-chip status is under threat, according to indicative index changes provided by FTSE Russell on Tuesday.

The investment company, which dropped Standard Life as well as the vowels in Aberdeen last year, is now set to be dumped from the FTSE 100.

With a market capitalisation of GBP3.28 billion, it is the second-smallest FTSE 100 constituent. Drugmaker Hikma Pharmaceuticals PLC, with a market value of GBP3.03 billion is also set to drop out.

The indications are based on closing prices from Friday. The actual index changes will be based on closing prices on Tuesday next week, with the final rebalancing announced after market close on Wednesday.

Many funds track indices, so quarterly changes are closely-watched by investors.

Replacing abrdn and Hikma are ConvaTec Group PLC, a medical products and technologies company, and F&C Investment Trust, an investment firm which is over 150 years old.

Those likely to drop out of the FTSE 250 index, meanwhile, are convenience food maker Greencore Group PLC, lender Provident Financial PLC, door and window components supplier Tyman PLC and power controllers maker XP Power Ltd.

Replacing them are NextEnergy Solar Fund Ltd, biotherapeutics company PureTech Health PLC, Warehouse REIT PLC and content creation-focused hardware and software firm Videndum PLC.

Videndum, like abrdn, has also recently changed its name. It was formerly known as Vitec. At 1,450.00 pence, Videndum shares are up sharply from a March 2020 closing low of 568.00p.

A FTSE 100 dumping for abrdn will be sure to steal the headlines, however. Last year, it agreed to sell the 'Standard Life' brand to Phoenix Group Holdings PLC. abrdn's rebrand was completed in July of last year.

It has not been an easy year for the firm since then. Earlier this month, it reported a swing to interim loss and lowered its outlook, amid market volatility.

The Edinburgh-based company booked a GBP320 million loss in the six months to June 30 versus a GBP113 million profit achieved a year prior. abrdn also scaled back its outlook.

"Current market uncertainty means our ambitions for revenue growth and improved cost/income ratio are likely to take longer than originally expected," it explained.

By Eric Cunha; ericcunha@alliancenews.com