Barratt Developments and St. James's Place Wealth Management have moved into the FTSE 100 this week.
House builder Barratt Developments and St. James’s Place Wealth Management have moved into the FTSE 100 index this week, following sharp growths in their share prices.
They take the places of food ingredients producer Tate & Lyle and engineering firm Amec.
Why has this happened?
The FTSE 100 index tracks the share price of the 100 largest companies on the London Stock Exchange.
The FTSE undertakes a quarterly review of qualifying companies on the Wednesday after the first Friday of the month in March, June, September and December. Any company that falls to 111th or below is automatically dumped from the FTSE 100. Equally, any company that reaches 90th or higher is promoted from the FTSE 250 to the FTSE 100.
[SPOTLIGHT]During the most recent review, Tate & Lyle’s and Amec’s relatively weaker share performances led to their relegation to the FTSE 250 to make way for the new pair of companies.
Just Retirement Group, Heritage Oil and Infinis Energy will be leaving the small cap index to join the FTSE 250, replacing Edinburgh Dragon Trust, Devro and Kenmare Resources.
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Strong share prices
Barratt Developments' shares have risen in price by 27% so far this year, following an extremely strong 2013. It is currently benefiting from the Government’s Help to Buy scheme, which is supporting home building projects by stimulating demand for housing. Read Help to Buy mortgages explained.
In January, Barratt reported that its total home sales had grown by a whopping 71% in the first six months of the 2013/14 financial year.
St James’s Place enjoyed a 73% rise in share prices during 2013 and has seen a steady growth in the price of shares since the start of 2014. Lloyds Banking Group sold its majority stake in the firm last year; since then its share price has jumped significantly.
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