The Latest FTSE 100 Reshuffle
LONDON -- The latest quarterly review of the FTSE 100 has just been published. The review sees EVRAZ and Polymetal International drop out of the U.K.'s top index while and Persimmon and Travis Perkins join the blue-chip elite.
The FTSE committee made its decision after the market closed yesterday, and the changes take effect from the start of trading on June 24.
Russian company EVRAZ -- the steelmaker controlled by Chelsea FC owner Roman Abramovich -- and precious-metals miner Polymetal International depart the FTSE 100 together, having also entered as a pair during December 2011.
Fears about demand from China in the case of EVRAZ and weak gold and silver prices in Polymetal's case have taken their toll on the shares.
With copper miner Kazakhmys having been demoted to the FTSE 250 at the previous quarterly review, Eurasian Natural Resources Corporation is now the only ex-Soviet miner remaining in the FTSE 100. ENRC could also soon depart if a bid to take the company private is successful.
Not quite Coke
Coca Cola HBC AG is the world's second-largest bottler of products for The Coca-Cola Company. Coca Cola HBC (the HBC in the name comes from "Hellenic Bottling Company") has recently switched its primary stock market listing from Athens to London, and it would have entered the FTSE 100 at this review but for technical reasons.
The company has a market cap of £6 billion, which would put it comfortably in the middle of the top index, so look out for its entrance at the next review during September.
Homebuilder Persimmon reenters the FTSE 100 having been ejected during the credit crunch year of 2008. Sentiment toward homebuilders has improved of late, and Persimmon's shares have gained 30% since the last quarterly review.
At a current price of 1,205 pence, the stock is trading at 17.4 times forecast earnings for 2013. That's on the high side compared with the broader market. But then, the broader market isn't forecast to deliver earnings growth in excess of 20% for each of the next two years; Persimmon is.
Further evidence of positive sentiment for the industry comes in the shape of building-materials supplier Travis Perkins. The company will be making its debut entry into the FTSE 100. I sang the praises of Travis Perkins as "a real sector dominator in the making" two or three years ago when the shares were trading at 840 pence on 10 times forecast earnings.
Today, the shares are changing hands for 1,538 pence, and the company is on a forward earnings multiple of 15.5. Analysts are forecasting mid-single-digit earnings growth for 2013, accelerating to mid-teens growth for 2014.
To finish up, let me say that if you're in the market for growth gems such as Travis Perkins, you may wish to read this exclusive Motley Fool report. You see, the company spotlighted in this report has subsidiaries with considerable growth potential that I don't believe the market has fully recognized. Just click here to download the report -- it's free.
The article The Latest FTSE 100 Reshuffle originally appeared on Fool.com.G. A. Chester has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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