Endeavour Mining and others expected to get a lift from likely inclusion in the FTSE 250


Although the likely (and short-lived) promotion of bid stocks Meggit PLC and Morrison (Wm) Supermarkets PLC to the FTSE 100 garnered most of the press commentary, a few interesting stocks are set to enter the FTSE 250 for the first time in the next reshuffle.

Although things may yet change before 31 August, when the final additions and deletions to the FTSE 100 and FTSE 250 are calculated, FTSE Russell, the global index provider, released “indicative changes” to the FTSE 250 index earlier this week that included Baltic Classifieds Group PLC (LSE:BCG), Bridgepoint Group PLC (LSE:BPT), Darktrace PLC (LSE:DARK), Draper Esprit PLC (AIM:GROW) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2).

Endeavour Mining is perhaps especially interesting given that FTSE Russell turfed out Just Eat Takeaway.com from the FTSE 100 after determining that the company’s nationality should be reassigned from the UK to the Netherlands.

In contrast, the nationality of Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) has been reassigned from Canada to the UK, paving the way for its probable entry into the FTSE 250 next month.

With a market capitalisation of around GBP4.2bn, Endeavour is the 120th largest London-listed company by market capitalisation, so it would take something dramatic for it not to make the cut for the mid-cap index at the end of the month.

To make it to the FTSE 100, it would have to rise by at least 26% based on the current rankings, which is a long shot to happen this year although Barclays has suggested that inclusion in the FTSE 250 could see around 10% of the company’s shares snapped up by fund managers and index-tracking funds.

“Potential FTSE indexation on 1 Sept could drive demand for ~10% of market cap (~20 days buying). The company is comfortably ahead of the FTSE minimum liquidity threshold so far in August,” the broker noted.

READ Endeavour Mining is undervalued vs global gold mining peers, says Barclays

Baltic Classifieds sounds even less like a UK company than Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) but the FTSE Russell regards it as such. It listed in London on 5 July and is 339th in the market capitalisation rankings with a market cap of GBP1.2bn. That suggests its inclusion in the FTSE 250 is not a shoo-in, although the rankings include a dozen or so stocks that are not eligible for inclusion in the index so it is probably on its way into the index.

Inclusion for the other indicative changes looks nailed on, as evidenced by the current market capitalisations, listed below:

  • Bridgepoint Group PLC (LSE:BPT), the private equity group, with a market cap of GBP4.0bn.
  • Darktrace PLC (LSE:DARK), the cybersecurity outfit, with a market cap of GBP4.1bn.
  • Draper Esprit, the venture capital firm, with a market cap of GBP1.5bn.


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