Ocado, the online grocery giant, has been nudged out of the FTSE 100, while cybersecurity powerhouse Darktrace enjoyed a brief stint in the spotlight before an impending takeover by a major US firm reshaped the landscape of London's premier stock market index.
Darktrace has soared to the top tiers of the UK's stock markets, with its share price rocketing by two-thirds in just half a year. The reshuffle was confirmed by analytics group FTSE Russell in their latest quarterly review, set to take effect from Monday, June 24.
However, Darktrace's rise could be fleeting as it's on the verge of being snapped up by US private equity titan Thoma Bravo in a deal valued at $5.3billion (£4.2billion), according to Dan Coatsworth of AJ Bell who suggests the company's tenure in the FTSE 100 might be "short-lived" and that it could "disappear from the top tier fairly soon".
Joining the elite club is housebuilder Vistry, which will rub shoulders with industry giants like Persimmon, Barratt, and Taylor Wimpey in the blue-chip index. Vistry's shares have surged roughly 68% over the past six months, seemingly immune to the broader challenges plaguing the housing sector, such as soaring mortgage costs.
With a strategic emphasis on affordable housing, Vistry has seen a sales boom and is gearing up to construct even more homes this year than last, buoyed by robust demand. LondonMetric, a real estate investment heavyweight, is also set for promotion to the top index following growth spurred by recent acquisitions.
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Ocado has been booted into the FTSE 250, following a near 40% flop in its share price over the past six months. "Ocado is no stranger to going in and out of the FTSE 100 and once again it looks set to move down a floor to the mid-cap FTSE 250 index," said Mr Coatsworth.
"One of the most Marmite names on the UK stock market, investors either love or hate the quasi grocery/ technology group and some even change their mind on a daily or weekly basis. On paper, the business model is focused on winning more grocery clients to power their online shopping warehouses, while also trying to improve the performance of a joint venture with Marks & Spencer."
"In reality, progress has been lumpier than gravy in a school canteen." Meanwhile, both St James's Place and RS Group have been demoted from the FTSE 100 in the latest reshuffle.
In the recent FTSE 250 shuffle, Alpha Group International, RS Group and XPS Pensions Group have all made an appearance. However, National Express-owner Mobico, iron pellet producer Ferrexpo and specialist investment group Octopus Renewables Infrastructure Trust are facing a downward slide from the FTSE 250.
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