Marks & Spencer returns to FTSE 100 while Abrdn and Persimmon get the boot
The upmarket supermarket made the return to the top tier after seeing its share price jump by more than two thirds over the past year.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Marks & Spencer has climbed back on to the UK’s FTSE 100 four years after dropping off the top stock index, while housebuilder Persimmon has been demoted following a rocky patch for the housing market.
The upmarket supermarket staged the return to the top tier after seeing its share price jump by more than two thirds over the past year.
M&S will officially rejoin the FTSE 100 on September 18 following the quarterly index reshuffle, according to analytics group FTSE Russell.
Despite the cost-of-living crisis with consumers feeling the squeeze, M&S has been the star performer across UK retail this year
It comes at a time of optimism for the historic high street retailer, which recently upgraded its profit outlook thanks to “strong trading”, having increased market share in both its clothing and home, and food, businesses.
Other retailers have flagged more challenging conditions, with inflation driving up business costs and putting consumers’ budgets under pressure.
Victoria Scholar, head of investment at Interactive Investor, said: “Despite the cost-of-living crisis with consumers feeling the squeeze, M&S has been the star performer across UK retail this year, outshining rivals with a stellar share price gain of over 75% so far this year, compared to Next for example, which is up around 17%.
“It has successfully embarked on a considerable turnaround under the leadership of Stuart Machin involving revamping its store estate and investing in technology and e-commerce.
“The analyst community are getting behind M&S’s turnaround, with several price target upgrades in August, including from Goldman Sachs, Deutsche Bank, Barclays and Credit Suisse, providing a further vote of confidence in the retail giant.”
Drug makers Dechra Pharmaceuticals and Hikma Pharmaceuticals and products supplier Diploma will also join the FTSE 100 after seeing their shares rise in value.
Meanwhile, housebuilder Persimmon has been booted off the blue-chip index and will join the FTSE 250 as the housing market feels the knock-on effect of rising borrowing costs.
Despite the firm sticking by its full-year profit guidance, it has seen its share price slump by around 28% over the past year.
Investment group Abrdn has also been relegated from the top index, for the second time in just over a year, after the firm flagged a tough year for investing against an uncertain economic backdrop.
Its share price has dropped by nearly 30% over the past six months.
Insurance firm Hiscox and chemicals business Johnson Matthey have also lost their spot on the FTSE 100, FTSE Russell confirmed.