Ashmore, Meggitt poised for promotion to FTSE 100

LONDON: Fund manager Ashmore Group is the only mid cap stock eligible for automatic promotion to Britain's FTSE 100 index when the compiler undertakes its quarterly review on Wednesday.

Private equity firm 3i Group and oil services firm John Wood Group , however, are both eligible for potential demotion into the FTSE 250 index, based on closing share prices from Friday, Sept 2.

Engineering firm Meggitt would therefore also be considered for possible entry into the FTSE 100 index for the purposes of balancing the changes to potential constituents.

Companies outside the FTSE 100 that grow to rank among the 90 largest by market capitalisation are automatically promoted into the blue-chip index, while the FTSE 100 constituents with the lowest value or that fall to 111th spot or below automatically drop into the FTSE Midcap 250 index.

Seven further changes could be made to the FTSE 250, based on Friday's closing prices, with energy services firm Cape, Irish engineer Kentz Corporation, and recently listed oil explorer Ophir Energy all eligible as new index entries.

Meanwhile, high-tech tools firm Oxford Instruments, gearbox maker Hansen Transmissions, telecoms firm KCOM Group, and support services and building firm Interserve are all poised for promotion from the FTSE Small Cap index, based on Friday's closing prices.

Going the other way, pub operators Enterprise Inns and Spirit Pub Company , real estate group St Modwen Properties , ground engineer Keller , and investment trust Fidelity Special Values would all be automatically demoted from the FTSE 250 index.

For balancing purposes, two other stocks would also have to be demoted to the small caps, with software firm Kofax and explorer JKX Oil & Gas the nearest FTSE 250 constituents that would be considered.

Index compiler FTSE will formally announce the changes to the FTSE UK index series after the market close on Wednesday, Sept. 7.

The review uses the closing prices from this Tuesday Sept. 6, but the changes have to be confirmed by a FTSE committee on Wednesday. The changes will be implemented from the start of business on Monday, Sept. 19.

Copyright Reuters, 2010