Aberdeen Loses FTSE 100 Spot to Morrison in Finance Erosionby
Paddy Power, Informa, Mediclinic will get added to index
Smiths Group, Hikma, Sports Direct also being removed
Aberdeen Asset Management Plc will get kicked out of Britain’s FTSE 100 Index to make room for consumer firms including Wm Morrison Supermarkets Plc and Paddy Power Betfair Plc.
The moves will diminish the index weighting of financial companies, an industry that has already been pummeled in this year’s equity rout. As of yesterday, the sector accounted for about 21 percent of the FTSE 100, down from almost 23 percent at the market peak in April, according to data compiled by Bloomberg. The Scottish asset manager, whose shares have tumbled 47 percent since their high last year, was left with a weighting of less than 0.2 percent from almost 0.3 percent.
Smiths Group Plc, Hikma Pharmaceuticals Plc and Sports Direct International Plc will also be removed from the FTSE 100, according to the index provider’s quarterly-review statement. Along with Paddy Power and Morrison, Mediclinic International Plc and Informa Plc will be added to the index effective March 21.
Consumer-staples shares accounted for almost 20 percent of the FTSE 100 as of Wednesday, up from 16 percent last year, while consumer-discretionary firms had a weighting of 9.1 percent, more than the 8.4 percent at the April peak, data compiled by Bloomberg show.