Direct Line and Dixons Carphone are set to become the two latest companies to join the FTSE 100 listing.
The insurer and electrical goods retailer are expected to sign up to the stock exchange in the coming week but homebuilder Barratt is due to drop out of the top 100 blue chip companies. Barratt only joined the index in March but will fall out after a drop in shares and concerns that the Bank of England will raise its interest rates in the future.
Soft drink can manufacturer Rexam is another company that is expected to fall out when the announcement is confirmed on Monday (September 8th). The firm has a market cap of £3.54 billion and was originally listed on the FTSE 100 in 1984.
Direct Line has enjoyed a positive few months with stocks rising by almost 40 per cent during the past year leading to a 6.5 per cent increase throughout August. After joining the FTSE 250 in December 2012 it has been able to generate a market capitalisation of £4.51 billion. Dixons Carphone has also gone from strength to strength in recent months.
The company was formed through a £3.8 billion merger between Carphone Warehouse and Dixons. The newly formed electricals retailer sells a range of products from mobile phones and boasts 3,000 stores across the UK with sales of almost £11 billion. The move has brought household names such as Currys, PC World and Carphone Warehouse under one umbrella.
Announcing the merger in May, Sebastian James, new chief executive of the firm, said: "We do things that are so adjacent that it makes sense to come together. Our markets are converging, and we are converging."
Dixons Carphone is among a number of companies that will be reviewed for introduction into the FTSE 100. There is also due to an additional review of businesses in the FTSE 250 categories to determine whether or not they need to be moved up or down.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.