I’m expecting four UK stocks to feature prominently in the financial news over the coming week. All are connected with the same event scheduled for next Wednesday (1st of December).
The companies in question are FTSE 100 members Darktrace and Johnson Matthey, and FTSE 250 stocks Electrocomponents and Dechra Pharmaceuticals.
The event in question is the publication of the final quarterly FTSE UK Index Series review of 2021.
How it works
For those unfamiliar with these reviews, a FTSE 100 company can suffer the ignominy of being relegated from the UK’s top index.
This is determined by its ranking by market capitalisation (share price multiplied by number of shares in issue) at the review date. Typically, relegation is due to the company’s share price having fallen significantly since the last review.
Conversely, a high-flying FTSE 250 firm (or recently listed stock with a big enough market capitalisation) can … Read more