Morrisons clings to its position in FTSE 100 index
MORRISONS yesterday narrowly escaped eviction from the FTSE 100 after being saved at the eleventh hour by strong retail figures.
Inmarsat was yesterday promoted to Britain’s premier share index, while power company Aggreko was relegated to the FTSE 250.
Bradford-based Morrisons had been widely expected to be demoted after suffering a decline in sales, profit and share during the rise of Aldi and Lidl, the German discounters.
Based on Friday night closing prices, it looked the most likely casualty. But shares rallied on Tuesday after figures from Kantar Worldpanel showed its sales had edged 0.1 per cent higher in the 12 weeks to 24 May – its first rise since December 2013, and the only sales growth among the Big Four supermarkets, including Tesco, Asda and Sainsbury’s.
The rise lifted Morrisons’ market value to £4.04bn, just above the £3.99bn worth of Aggreko.
Satellite-maker Inmarsat’s shares have jumped 26 per cent this year, giving the company a market value of £4.5bn.
The news will be a welcome boost for the supermarket’s new boss, Dave Potts, who is likely to face another test at today’s annual general meeting in Bradford.
Shareholders are expected to voice their anger at the £3m payoff for Dalton Philips, who was ousted as the supermarket’s boss in January.
The meeting will also be watched with keen interest, after Philip’s dressing-down last year by former chairman Sir Ken Morrison, who described Philip’s strategy as “bullshit”.
A trio of challenger banks, including Aldermore, Onesavings and Shawbrook, were admitted into the FTSE 250 index, alongside newly-listed Auto Trader, John Laing, Wizz Air and Woodford.
Meanwhile banknote printer De La Rue, Infinis Energy and Blackrock’s World Mining Trust dropped out.