AIB promoted to key FTSE index as Paddy Power Betfair moves down
Cairn Homes to join FTSE Global Small Cap Index under rejig from September 18th
AIB’s shares promoted to FTSEurofirst 300 index. Photograph: Jock Fistick/Bloomberg
AIB, which returned to the main London and Dublin stock markets in June after 7½ years, will be promoted to a keenly followed stock market index, the FTSEurofirst 300, from the middle of September.
Index operator FTSE Russell admitted the bank’s shares to the FTSE EuroMid index shortly after the bank’s flotation on June 23rd, in which the Government sold a 28.8 per cent stake in the bank to investors for €3.4 billion.
The bank’s promotion to the FTSEurofirst was unveiled late on Wednesday as part of FTSE Russell’s regular review of market indices. Fund managers who track the index will be forced to buy shares in AIB before the changes take effect on September 18th.
Davy analyst Jim O’Neill said on Thursday that Cairn Homes shares should also receive a boost as the index operator said that the homebuilder’s shares will be added to the FTSE Global Small Cap Index in September. Meanwhile, Paddy Power Betfair will be relegated from the FTSEurofirst 300 to the FTSE EuroMid index.