DCC to join UK's biggest companies in FTSE 100
Irish diversified services company DCC is to be promoted to the prestigious FTSE 100 index in London after a strong year of trading that has seen its shares almost double in value.
DCC was one of three companies that joined the exchange following its quarterly index review yesterday.
The other two were named as payments processor Worldpay and sub-prime lender Provident Financial. UK supermarket giant Morrisons, security group G4S and engineering firm Meggitt are also expected to be demoted.
Companies face demotion if their value falls below that of the 110th largest ranked business. If a FTSE 250 firm climbs into the top 90 companies, it can be promoted. Changes are due to take effect after the close of the market on December 18.
DCC, which specialises in a number of activities ranging from oil distribution to waste management, has seen the value of its stock jump from about £35 a share in January to just under £60 as of mid-afternoon trading in London yesterday.
The Irish company has a market capitalisation of nearly £5.3bn.
The rise comes on the back of a strong trading year for the firm, which recently announced a 23pc year-on-year increase in its half year profits to £52.5m.
Goodbody analyst Gerry Hannigan said that the new listing is positive for DCC.
As well as attracting index funds, many of whom are required to hold a certain number of shares from the FTSE 100, he said its promotion would be "a recognition of the size of the company and its progress over the past year".