FTSE 100 Index changes – effect on share price of companies joining the index

FTSE 100 Index quarterly reviews

The following charts show the share price of six companies that have joined the FTSE 100 Index (in the years 2012-2013). The time period for each chart is six months, starting from three months before the company joined the index. The dashed vertical line shows the date it was announced the company was joining the index.

So the charts show the share price behaviour in the three months leading up to joining, and the three months after.

Review changes are implemented at close on the third Friday of the month of the review. (Further information on the FTSE 100 Index quarterly reviews.)

It is quite common that share prices rise immediately before a company joins the FTSE 100 Index. While immediately afterwards the price is usually flat or falls back. This effect can be seen in the following charts.

FTSE 100 Index change - company joining index (CRDA)

FTSE 100 Index change - company joining index (ADN)FTSE 100 Index change - company joining index (BAB)FTSE 100 Index change - company joining index (MRO)FTSE 100 Index change - company joining index (WG)FTSE 100 Index change - company joining index (LSE)


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