Home Business Sun Shines On FTSE 100 Amid Reshuffle As ITV Aims For Prime-Time Slot

Sun Shines On FTSE 100 Amid Reshuffle As ITV Aims For Prime-Time Slot

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  • Royal Mail PLC (LON:RMG) begins its new FTSE 100 chapter by rising 3%
  • ITV plc (LON:ITV) looks likely to re-join the FTSE 100, rising 1.8% today
  • Engineer Renishaw plc (LON:RSW) likely to leave FTSE 100
  • Moonpig Group PLC (LON:MOON), Trustpilot Group PLC (LON:TRST), Darktrace PLC (LON:DARK) and Spire Healthcare Group PLC (LON:SPI) likely to join FTSE 250
  • Sabre Insurance Group PLC LON:SBRE, Provident Financial plc (LON:PFG), Foresight Solar Fund Ltd (LON:FSFL) and Wickes Group PLC (LON:WIX) likely to leave FTSE 250

FTSE 100 Receives An Early Summer Boost

"The sun is shining on the FTSE 100 with the index receiving an early summer boost pushing it firmly above the psychologically important 7,000 mark.

As the global growth recovery story unfolds, miners in particular are on the front foot today, as high demand for metals in particular push prices higher. Anglo American and Rio Tinto are top of the risers board, surging by around 4% in early trade, while Glencore and BHP Billiton were up by around 3.5%.

Royal Mail’s new chapter in the FTSE 100 begins with a fresh upwards march of its share price, rising in early trade by 3%. It was a slam dunk new entry, after opening a bulging sack of profits and headed into the top flight at the end of last week, ahead of the main re-shuffle later today. It regained the coveted position early with the deletion of RSA Insurance Group, following its takeover.

The other FTSE cards will be shuffled later based on closing prices at the end of trading.

ITV May Regain Its Prime-Time Slot

ITV is now looking like a highly likely contender to regain its prime-time slot following a recovery in advertising spending. Its share price has risen again today by 1.8%, increasing expectations that it will make it back into the top flight. The Love Island broadcaster’s revenue plunged after the hit show was cancelled and episodes of the programme were scaled back during the pandemic but marketing spend is ramping up once again. There are also hopes for a significant rebound in its Studios business, where it produces content for others, to capitalise on the ongoing streaming wars.

Renishaw has seen a lift in its share price today, but it is highly unlikely to be enough to stop its slide back into the FTSE 250. It was boosted into blue chip status by announcing its sale with impeccable timing for the last reshuffle. But the sale board is still up and the high price tag and strings attached to the deal seemed to have put off potential suitors.

Cyber security firm, DarkTrace has seen another dart upwards today, with shares lifting 4%. Founded by US and UK intelligence agents in 2013, it uses machine learning to scan regular business operations and detect tiny irregularities.  Investors are clearly hoping the global shift to digital should open up new opportunities and markets for DarkTrace as firms scale up their operations to meet demand, whilst trying to ensure their systems stay secure.

Auction Technology Group Slips

Auction Technology Group has slipped today, with shares down by almost 2%. However, when the hammer goes down on the reshuffle later today, the company is still highly likely to enter the FTSE 250 fray. The Antiques Trade Gazette owner is an expert in online auctions and figures in its first results after listing in February indicated that there was still high demand for remote bidding despite the easing of pandemic restrictions.

E-card retailer Moonpig is set to fly into the FTSE 250, after snuffling out a hefty valuation at its IPO launch.  It’s been given another push today with shares up 2.5%. By positioning itself as a digital sales platform, using data to predict consumer preferences, Moonpig has succeeded in positioning itself as a big e-commerce player, rather than an online card retailer.

The consumer reviews operator Trust Pilot has capitalised on the accelerated shift to digital during the pandemic and launched on the London market as part of the IPO gold rush. After a bit of a volatile start to trading, its shares have broadly risen over the past month, as investors assess not just its value as a reviews site but also the vast amount of data it holds on consumer behaviour.  Its shares have fallen back a little this morning, but this should not blow its FTSE 250 journey off course.

Sabre Insurance Group Faces Increasing Competition

Shares in Sabre Insurance Group have ticked up a little today, but the company is still likely to drop down a gear from the FTSE 250 as it faces increasing competition in the UK car insurance market. The company forecast that recent lower premium volume will still be a headwind for sales during 2021.

Although shares have recovered a little today, up by 3.5%, the fortunes of Provident Financial Group have been seriously on the slide of late. The company called time on its doorstep lending business as part of its attempt to climb out of a financial black hole, after being forced to pay compensation for mis-selling its products. Shifting its business model away from riskier high interest loans towards a mid-cost credit model now looks like the direction of travel for the company.

The Jersey based investment company, Foresight Solar Fund has lost some of its shine amid a change in the direction of its diversified portfolio. It’s won shareholder approval to focus on battery storage alongside its ground based solar plants but it’s likely to take time for the strategy to bear fruit. Shares are up 0.6% today but it is still likely to head out of the FTSE 250.

Tyman has already turned a page in its FTSE story, automatically entering the FTSE 250 from the All Share Index at the end of last week. Its shares have risen another 2% today as investors expect the door and window manufacturer to continue to benefit from robust demand for repairs, renovations and new build homes in its key markets."

Article by Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown

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