FTSE 100 and FTSE 250 Quarterly Review – March 2017

After market close on 1 March 2017 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 17 March 2017 and take effect from the start of trading on Monday, 20 March 2017.

FTSE 100

Joining: Scottish Mortgage IT [SMT], Rentokil Initial [RTO]

Leaving: Capita [CPI], Dixons Carphone [DC.]

FTSE 250

Joining: Northgate [NTG], Sanne Group [SNN], Syncona [SYNC]

Leaving: Brown N [BWNG], CMC Markets [CMCX], International Personal Finance [IPF]

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FTSE 100 and FTSE 250 Quarterly Review – December 2016

After market close on 30 November 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 16 December 2016 and take effect from the start of trading on Monday, 19 December 2016.

FTSE 100

Joining: ConvaTec Group [CTEC],  Smurfit Kappa [SKG]

Leaving: Polymetal International [POLY], Travis Perkins [TPK]

FTSE 250

Joining: Ferrexpo [FXPO], NewRiver REIT [NRR], Nostrum Oil & Gas [NOG], Polymetal International [POLY], Travis Perkins [TPK]

Leaving: Countrywide [CWD], DFS Furniture [DFS], Laird [LRD], NCC Group [NCC], Smurfit Kappa [SKG]

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FTSE 100 and FTSE 250 Quarterly Review – September 2016

After market close on 31 August 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 16 September 2016 and take effect from the start of trading on Monday, 19 September 2016.

FTSE 100

Joining: Polymetal International [POLY]

Leaving: Berkeley Group [BKG]

FTSE 250

Joining: Berkeley Group Holdings [BKG], GVC Holdings [GVC], Hunting [HTG]

Leaving: Polymetal International [POLY], Pendragon [PDG], Circassia Pharmaceuticals [CIR]

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FTSE 100 and FTSE 250 Quarterly Review – June 2016

After market close on 1 June 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 17 June 2016 and take effect from the start of trading on Monday, 20 June 2016.

FTSE 100

Joining: Hikma Pharmaceuticals [HIK]

Leaving: Inmarsat [ISAT]

FTSE 250

Joining: Ascential [ASCL], CMC Markets [CMCX], Countryside Properties [CSP], CYBG [CYBG], Hill & Smith Hldgs [HILS], Metro Bank [MTRO], Smurfit Kappa Group [SKG]

Leaving: Highbridge Multi-Strategy Fund [HMSF], Interserve [IRV], Jimmy Choo [CHOO], Lookers [LOOK], Melrose Industries [MRO], Northgate [NTG], Ophir Energy [OPHR]

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FTSE 100 and FTSE 250 Quarterly Review – March 2016

After market close on 2 March 2016 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 18 March 2016 and take effect from the start of trading on Monday, 21 March 2016.

FTSE 100

Joining: Informa [INF], Mediclinic International [MDC], Morrison (Wm) Supermarkets [MRW] and Paddy Power Betfair [PPB]

Leaving: Aberdeen Asset Management [ADN], Hikma Pharmaceuticals [HIK], Smiths Group [SMIN] and Sports Direct International [SPD]

FTSE 250

Joining: Kaz Minerals [KAZ], McCarthy & Stone [MCS], Paysafe Group [PAYS], Softcat [SCT]

Leaving: 888 Holdings [888], Enterprise Inns [ETI], Nostrum Oil & Gas [NOG], Poundland Group [PLND]

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FTSE 100 and FTSE 250 Quarterly Review – December 2015

After the close on 2 December 2015 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 18 December 2015 and take effect from the start of trading on Monday, 21 December 2015.

FTSE 100

Joining: DCC, Provident Financial, Worldpay Group

Leaving: G4S, Meggitt, Morrison (Wm) Supermarkets

FTSE 250

Joining: Assura, Hastings Group Holdings, Ibstock, Renewables Infrastructure Group

Leaving: Foxtons Group, Hunting, Kaz Minerals, Petra Diamonds, Premier Oil

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FTSE 250 index reviews

Every quarter the FTSE set of indices (incl. FTSE 100 and FTSE 250 indices) are reviewed and the component stocks changed if required.

Elsewhere we have looked at the impact on the share prices of companies entering or leaving the FTSE 100 Index, here we look at the FTSE 250 Index.

Companies leaving the FTSE 250 Index

The charts below show the share price behaviour of nine companies that left the FTSE 250 Index (relegated to the FTSE Small Cap Index, not promoted to the FTSE 100 Index). The time period for each chart is 30 trading days, starting from 15 days before the index review announcement. The vertical line in each chart indicates the announcement day of the company leaving the index (this is the date under the company name).

FTSE 250 index reviews – companies leaving the index

It can be seen that, in most cases, the share price falls (quite sharply in some cases) in the few days immediately before the index review announcement, then rises in the few days following the announcement, and then falls again five or six days after the announcement.

Companies joining the FTSE 250 Index

The charts below show the share price behaviour of nine companies that joined the FTSE 250 Index (promoted from the FTSE Small Cap Index, not relegated from the FTSE 100 Index). As above, the time period for each chart is 30 trading days, starting from 15 days before the index review announcement. The vertical line in each chart indicates the announcement day of the company joining the index (this is the date under the company name).

FTSE 250 index reviews – companies joining the index

It can be seen that, in most cases, the share price rises in the six to ten days before the announcement; following which the price either trades flat or falls back.


Extract taken from The UK Stock Market Almanac 2015.

Order your copy of the new 2016 edition now!

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FTSE 100 and FTSE 250 Quarterly Review – June 2015

After the close on 3 June 2015 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 19 June 2015 and take effect from the start of trading on Monday, 22 June 2015.

FTSE 100

Joining: Inmarsat

Leaving: Aggreko

FTSE 250

Joining: Aldermore Group, Auto Trader Group, B&M European Value Retail, John Laing Group, Onesavings Bank, Shawbrook Group, Wizz Air Holdings, Woodford Patient Capital

Leaving: BlackRock World Mining Trust, De La Rue, Imagination Technologies Group, Infinis Energy, Law Debenture Corp, Personal Assets Trust, RPS Group, Soco International

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FTSE 100 and FTSE 250 Quarterly Review – March 2015

After the close on 4 March 2015 the FTSE Group confimed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 20 March 2015 and take effect from the start of trading on Monday, 23 March 2015.

FTSE 100

Joining: Hikma Pharmaceuticals

Leaving: Tullow Oil

FTSE 250

Joining: AA, Imagination Technologies Group, Virgin Money Holdings

Leaving: Afren, Game Digital, Oxford Instruments

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Stock Index changes (other indices) – paper review

Previously, we have reviewed the academic literature on index changes for the FTSE 100 and S&P 500 indices; here we present a brief review and listing of academic papers on other indices.

This article presents a brief review and listing of academic papers on stock index changes.


Generally, most of the papers found similar effects for companies added to or deleted from indices as has previously been reported for the S&P 500 and FTSE 100 indices. Namely, shares experience positive abnormal returns and increased trading volumes following the announcement of their addition to an index.

An exception was Beneish and Gardner (1995) who found that share prices and volumes were not affected for new DJIA companies (probably due to a lack of index funds associated with the DJIA) although shares saw big falls when deleted from the index.

Shankar and Miller (2006) found that shares experienced greater increases (declines) when companies were introduced (deleted) from the series of S&P indices, than those companies that just moved between S&P indices.

One of the greatest points of difference is whether the index change effects on shares are permanent or temporary. The papers finding the effects permanent were: Hacbedel (2007) with respect to the MSCIEM, and Liu (2011) for the Nikkei 225. While those finding the effects temporary were: Shankar and Miller (2006) for the S&P SmallCap 600 Index,  Chakrabarti, Huang, Jayaraman and Lee (2005) for the MSCI indices, and Biktimirov, Cowan and Jordan (2004) for the Russell 2000.


INDEX (of papers listed below)

[Papers listed in reverse date order; indicates major paper.]

  1. What Happens When a Stock is Added to the Nasdaq-100 Index? What Doesn’t Happen? [2014]
  2. Market reactions to changes in the Nasdaq 100 Index [2013]
  3. Regression Discontinuity and the Price Effects of Stock Market Indexing [2013]
  4. The price effects of index additions: A new explanation [2011]
  5. Does Inclusion in a Smaller S&P Index Create Value? [2010]
  6. Why Do Index Changes Have Price Effects? [2007]
  7. Market Reaction to Changes in the S&P SmallCap 600 Index [2006]
  8. Price and volume effects of changes in MSCI indices – nature and causes [2005]
  9. Do Demand Curves for Small Stocks Slope Down? [2004]
  10. Information Costs and Liquidity Effects from Changes in the Dow Jones Industrial Average List [1995]



What Happens When a Stock is Added to the Nasdaq-100 Index? What Doesn’t Happen?
Authors [Year]: Susana Yu, Gwendolyn P. Webb, Kishore Tandon [2014]
Journal [Citations]:
Abstract: Additions to the Nasdaq-100 Index are based primarily on market capitalization rather than on judgments about a firm’s stature in its industry. We analyze abnormal returns upon announcement that a stock will be added to the Nasdaq-100 Index in a multivariate analysis that incorporates several possible alternative factors. We find that only liquidity variables are significant, but that factors representing feedback effects on the firm’s operations and level of managerial effort are not. This evidence suggests that additions to the Nasdaq-100 Index are associated with liquidity benefits but not with certification effects of the type associated with additions to the S&P indexes.
Ref: BA006


Market reactions to changes in the Nasdaq 100 Index
Authors [Year]: Ernest N. Biktimirov and Yuanbin Xu [2013]
Journal [Citations]:
Abstract: We examine stock market reactions to changes in the Nasdaq 100 index. We find asymmetric price response accompanied by a significant increase in trading volume on the effective date. Firms added to the Nasdaq 100 Index experience significant increases ininstitutional ownership, the number of market makers, and the number of shareholders. In contrast, firms removed from the index show significant decreases in the number of institutional shareholders. Additions to the Nasdaq 100 Index also show significant increases in four liquidity measures, whereas deletions demonstrate significant decreases in two liquidity measures. These changes in liquidity are related to the abnormal return on the announcement day. Taken together, the results provide support for the liquidity hypothesis.
Ref: AA723

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