Dot.coms exit from main FTSE index

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The Independent Online

A host of star names from the era of dot.com mania are facing a humiliating exit from the FTSE AllShare this week, when the UK's main index provider unveils its quarterly reshuffle.

A host of star names from the era of dot.com mania are facing a humiliating exit from the FTSE AllShare this week, when the UK's main index provider unveils its quarterly reshuffle.

More than 80 stocks are expected to be demoted to FTSE's Fledgling index, below even small-cap status and off the radar of the major UK fund managers. Most tracker funds are linked to the AllShare, an index designed to cover 99.9 per cent of the UK market by capitalisation.

Among the stocks affected are the websites groups Scoot.com, QXL and 365 Corporation; the internet-focused investment bank Durlacher; the cash-strapped telecoms group Redstone; and Infobank, the software house now renamed Izodia. All have seen their market value collapse to less than £40m.

FTSE will also this week discuss changes to the rules for inclusion in the AllShare index. It is considering a move to a fixed number of stocks after criticism that the current system is not transparent enough. It is expected that the FTSE Small Cap will be fixed at 400 stocks.

The AllShare will then be made up of the UK's 750 biggest companies, an amalgamation of small caps, mid caps and members of theFTSE 100.

This week's reshuffle should see the engineering group GKN demoted from the top index, assuming no big market swings before tomorrow evening, when the changes are calculated.

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