Wound care specialist ConvaTec, F&C Investment Trust and retailer Frasers Group are all set to join the main UK index shortly, as index experts at JPMorgan and Hargreaves Landsdown expect (we reported).
In addition, Homeserve should – at least temporarily – be listed there. As Susannah Streeter, an analyst at Hargreaves Lansdown, wrote, the self-acquiring home emergency repair service provider is likely to replace Homeserve Avast in the “Footsie.” The only thing missing is final approval for the acquisition of the antivirus software company by US giant NortonLifeLock, which is expected to be granted on September 12th.
However, Homeserve itself is also in the process of being acquired by Brookfield Asset Management. According to Streeter, the acquisition should be completed in the coming months, which would then have to replace the company in the Footsie.
In addition to Avast, the pharmaceutical company Hikma, the investment company Abrdn and the supplier of joinery products for the construction industry, Howden Joinery Group, will probably have to leave the regular review of the FTSE 100, as Streeter and her colleague Pankaj Gupta of JPMorgan expect.
The index provider FTSE Russell is expected to announce any changes this Wednesday, August 31. The changes will then come into effect on Monday, September 19.
Index changes are particularly important for funds that replicate indices in real terms (such as physically replicating ETFs). There must then be shifted and reweighted accordingly, which can have an impact on share prices.
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