The FTSE’s quarterly reshuffle is worth watching as it can give your stock a boost or a knock depending on where you are and which way you’re travelling.
You might assume that moving up is a good thing. But a number of companies could see their stock dumped when they join the FTSE 250, reports the FT’s Alphaville blog.
‘Lower down the corporate ladder, Kofax, Northgate (that’s the white van man rental company) and Hansteen are all poised to join the FTSE 250 mid cap index in place of Hansen Transmissions, McBride and Sportingbet,’ says the FT.
‘It will be worth watching the prices of Kofax, Northgate and Hansteen because small cap index tracker funds might be forced to dump their holdings once the news is confirmed.’
The reshuffle is set to take place next Wednesday.