Elan and Iona anticipate Eurotop 300 showing

Shares in Elan Corporation and Iona Technologies are expected to receive a further boost this week as the stocks could be included in the Eurotop 300 Index when the new configuration is announced on Wednesday.

Baltimore Technologies' inclusion on the FTSE 100 on Wednesday has been well flagged but the addition of Elan and Iona to the FTSE World Index on Friday night is considered a precursor to inclusion in the major FTSE Pan-European Index. Food company Glanbia has, however, been deleted from the Eurotop 300 Index.

This includes the 300 largest firms in Europe based on their market capitalisation. A listing would be a boost, particularly for Elan, as it will encourage major European investors who use the Eurotop 300 Index as a basis for their asset allocation to invest in the company.

Elan, headed by Mr Donal Geaney, is the largest stock listed on the Dublin market following the recent rise in the shares' value. Last week, they surged after the company said the new application for its ziconotide painkilling drug had been accepted as filed by the US Food and Drug Administration.

The FDA has also agreed to a "fast-track" six-month review of the application for the drug, which is being developed to treat severe chronic pain in diabetes, cancer and AIDS patients. Its decision to grant the shorter review period for ziconotide means that, if it approves the drug, the company could have it on the market around the end of the third or the start of the fourth quarter.

It is precluded from inclusion in the FTSE 100 and Eurotop 100 indices because it is not registered in the UK. It is listed on the New York Stock Exchange and some 80 per cent of its shareholders are in that market. Its move to one of the major European indices should help the firm to expand its shareholder base beyond the US and bring the major European investors on board.

Iona Technologies, headed by Dr Chris Horn, is one of Ireland's flagship technology stocks and hit an all-time high last week on the US Nasdaq stock exchange, benefiting from the continuing positive sentiment towards the sector.

The new configurations will reflect the shift from old economy stocks to fast-growth technology stocks.

Blue chip stocks such as brewer Scottish & Newcastle; utility Thames Water; leisure group Whitbread; and building materials group Hanson are in danger of being deleted.

These deletions will make way for the likes of Baltimore, Cable & Wireless Communications and Thus, the Internet spin-off from Scottish Power and Internet provider Freeserve.

Wednesday's revision is probably the biggest shake-up in the index and those which make the grade will automatically attract the attention of pension and tracker funds which focus on the key indices. Ryanair was also recently elevated to one of the STOXX mid-cap indices.