Lonmin, Vedanta, Drax Will Join FTSE 100, FTSE Says
Stock Chart for Lonmin PLC (LMI)
Lonmin Plc (LMI) and Vedanta Resources Plc (VED), two mining companies whose shares have surged with metal prices this year, will 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, will also join, FTSE said after its quarterly review of U.K indexes. The three stocks will replace Ladbrokes Plc (LAD), Daily Mail & General Trust Plc (DMGO) and Cable & Wireless Plc, the index compiler said. The 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. About 29 billion pounds ($54 billion) track the FTSE 100, according to Citigroup Inc. Stocks automatically join the FTSE 100 if they are among the 90 biggest in Britain by value when the review occurs.
Lonmin, the world's No. 3 platinum producer, has jumped 49 percent this year. Vedanta, India's largest producer of copper and zinc, gained 41 percent. Their addition brings the number of mining companies in the FTSE 100 to eight. Drax Group, the U.K. operator of Europe's biggest coal-fired power plant, has climbed 65 percent.
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, will move to the FTSE 250 Index of medium-capitalization stocks, FTSE said.
Debenhams Plc (DEB), U.K.'s second-biggest U.K. retailer, and Qinetiq Plc, the country's top defense-research company, have also been added to the FTSE 250. Other additions to the FTSE 250 include Wolfson Microelectronics Plc (WLF), a maker of semiconductors for Apple Computer Inc. (AAPL US); Britvic Plc (BVIC), the maker of Pepsi in the U.K., and PayPoint Plc (PAY), the U.K. payment-collection network.
The companies being removed from the FTSE 250 are: iSOFT Group Plc, JPMorgan Fleming Overseas Investment Trust, Telent Plc, Yule Catto & Co. and Euromoney Institutional Investor Plc. (ERM) They will be moved to the FTSE SmallCap Index.
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