LONDON (Reuters) - Hikma Pharmaceuticals HIK.L will be promoted to Britain's blue chip FTSE 100 .FTSE equity index following a sharp rally in its shares since March, while satellite firm Inmarsat ISA.L will drop out of the index.
The London Stock Exchange Group said on Wednesday that the changes will take effect on June 20.
Getting into the FTSE 100 can often fuel further demand for a company’s shares, since funds that track the FTSE or invest in the index can then add that stock to their portfolio, while the inverse is true if a company falls out of the FTSE 100.
Shares in Hikma, which reiterated its guidance for 2016 last month and said it continued to expect full year group revenue in the range of $2.0 billion to $2.1 billion, have surged 45 percent since mid-March.
On the other hand, Inmarsat has fallen 37 percent since early February as the company is facing tough trading conditions in its maritime and government markets businesses.
A slowdown in the global economy has hit its shipping-related operations, one of the main engines for cash flow in the satellite communications group.
The rankings are decided on the basis of market capitalizations. Companies with the lowest market cap in the FTSE 100 drop into the FTSE 250 mid-cap index .FTMC, and vice versa.
The companies joining the mid-cap index included Metro Bank MTRO.L, CYBG CYBGC.L, whose brands include Clydesdale Bank and Yorkshire Bank, and CMC Markets CMCX.L. Shares in the three companies have climbed between 10 percent and 30 percent since the start of April.
The companies being demoted to the FTSE small cap index .FTSC are: Jimmy Choo CHOO.L, Highbridge Multi-Strategy Fund HMSF.L, Interserve IRV.L, Lookers LOOK.L, Melrose Industries MRON.L, Northgate NTG.L and Ophir Energy OPHR.L, the Stock Exchange Group said in a statement.
Editing by Sudip Kar-Gupta and Vikram Subhedar
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