RE: Poly bouncing1 Sep 2016 13:59
Piece from Proactive:
House builder Berkeley Group Holdings PLC (LON:BKG) is set to have its position in the FTSE 100 index repossessed.
The company, valued at £3.8bn, was the big name casualty in the first re-jigging of the constituents of the UK's top-share index since the EU referendum vote.
Its focus on the south of England, where the expectation is that house prices will be hit hardest by Britain's decision to leave the European Union, meant it was hit particularly hard by the so-called Brexit decision.
Its shares fell by more than a fifth, from £32.85p on the day of the referendum to £25.93 the day after, before falling as low on £22.70 on 6 July. Since then, the shares have recovered to £27.67, but not enough for the company to retain its place in the top tier.
Its place has been taken in the Footsie by Polymetal International PLC (LON:POLY), which itself has seen a bit of share price volatility in the last two days, presumably caused by index-tracking funds trading shares ahead of the FTSE index constituents reshuffling, which will come into effect on Monday, 19 September, based on stock market valuations at the close of business on 31 August.
Polymetal was off 1.5% this morning at £10.37p having fallen from £11.16 yesterday to £10.53p last night.
The precious metals miner announced on Monday that construction of its mine at Svetloye, in Okhotsk, Russia, had been completed nine months ahead of the original schedule.
Total capital expenditure comprised US$ 60 million, which is 33% below initial project estimates, primarily driven by the significant devaluation of the Russian rouble since the start of construction in 2014.
The promotion marks a return from the cold for the Russia, Kazakhstan and Armenia-focused gold and silver producer, and offers some encouragement to gold bugs that the sector is back in fashion. Polymetal was ejected from the FTSE 100 index several years ago.
“This overseas company is likely to have benefited from the fall in sterling post-Brexit and in addition, the recovery in gold and silver prices will have helped raised the value of the company,” said Helal Miah, an investment research analyst at the Share Centre.
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