Lonmin, Vedanta, Drax May Join FTSE 100, FTSE Says

Lonmin Plc (LMI) and Vedanta Resources Plc (VED), two mining companies whose shares have surged with metal prices this year, will likely join the U.K.'s benchmark FTSE 100 Index later this month, FTSE Group said.

Drax Group Plc (DRX), a utility that sold shares to the public in December, may also join, FTSE said in an e-mail. The three stocks will likely replace Ladbrokes Plc (LAD), Daily Mail & General Trust Plc (DMGO) and Cable & Wireless Plc, the index compiler said.

FTSE Group will announce the results of its quarterly review of U.K. indexes after the end of trading tomorrow. Any changes will take effect after the market closes on June 16.

Joining an index can boost a company's stock price because funds that mirror the benchmark buy shares of its members.

``Demand from China and the rest of the world'' has underpinned both mining stocks' performance, said Gary Jones, a fund manager with Aberdeen's Edinburgh tracker team. ``They have had such a good run.''

Lonmin, the world's No. 3 platinum producer, has jumped 50 percent this year, as has Vedanta, India's largest producer of copper and zinc. Their addition would bring the number of mining companies on the FTSE 100 to eight.

Drax Group, the U.K. operator of Europe's biggest coal- fired power plant, has climbed 65 percent.

About 29 billion pounds ($54 billion) track the FTSE 100, according to research from Citigroup Inc. Stocks automatically join the FTSE 100 if they are among the 90 biggest in Britain by value when the review occurs.

FTSE 250 Changes

Cable & Wireless, the No. 2 U.K. phone company, Ladbrokes, the world's biggest publicly traded bookmaker, and Daily Mail, publisher of the newspaper of the same name, would likely be pushed into the FTSE 250 Index of medium-capitalization stocks.

Other potential additions to the FTSE 250 include Debenhams Plc (DEB), Qinetiq Group Plc (QQ/), Wolfson Microelectronics Plc (WLF), Britvic Plc (BVIC) and PayPoint Plc (PAY), the e-mail said.

Potential deletions from the FTSE 250, aside from the three companies named as potential FTSE 100 candidates, are Telent Plc, Euromoney Institutional Investor Plc (ERM), JPMorgan Fleming Overseas Investment Trust Plc, ISoft Group Plc and Yule Catto & Co., FTSE said.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.

To contact the editor responsible for this story: Balduin Hesse at bhesse2@bloomberg.net.

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