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Limited Footsie changes reflect stable market

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Index provider FTSE says it will delete constituents Autonomy Corporation and Exel from the FTSE 100 index. At the same time, Sema and Scottish and Newcastle will be added, it says in a statement.
The changes to the blue-chip index were approved at a regular quarterly review, and were to be applied at the close of business on Friday March 16.
FTSE’s independent practitioner committee also announced a list of six reserve stocks. Reserve stocks are stocks which would be used to fill any vacancies which might be created in the index as a result of corporate actions before the next review, scheduled for June.
Stocks on the reserve list are Enterprise Oil, Whitbread Holdings, Smith & Nephew, Gallaher, Morrison (Wm) Supermarkets and Next.
FTSE chief executive Mark Makepeace said the number of changes made this time – just two – contrasted to the review in March 2000, when a record nine constituent changes were made to the FTSE 100.
He said: “The changes made last year reflected the underlying volatility in the market, while today’s changes are indicative of more stable market conditions. FTSE indices are designed to be a barometer of market activity.”

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