Ocado kicked off FTSE 100 while Darktrace secures ‘short-lived’ promotion

Grocery group Ocado has dropped out of the FTSE 100, while cybersecurity firm Darktrace has secured a short-lived promotion ahead of a major US takeover, in the latest reshuffle in London’s top stock market index.

Darktrace has climbed into the upper echelons of the UK’s stock markets after its share price surged by two thirds over the past six months.

Analytics group FTSE Russell confirmed the changes in the latest quarterly review, which will come into effect on Monday June 24.

But Darktrace’s ascent comes as it is in the process of being acquired by American private equity group Thoma Bravo, in a mega-deal worth 5.3 billion US dollars (£4.2 billion).

Dan Coatsworth, investment analysis at AJ bell, said it could be a “short-lived” change for the FTSE 100, and Darktrace could “disappear from the top tier fairly soon”.

Housebuilder Vistry is also joining the blue-chip index, to sit among a number of rival developers including Persimmon, Barratt and Taylor Wimpey.

The company has seen its share price spike by about 68% in the past six months.

It has managed to stay shielded from some of the wider issues facing the housing sector, since mortgage costs were pushed higher.

Its focus on affordable housing has boosted sales and it plans to build more homes this year than last year thanks to strong levels of demand.

Real estate investment firm LondonMetric will also be lifted into the top index after recent acquisition-boosted growth.

Meanwhile, Ocado has been kicked into the FTSE 250 after its share price flopped by about 40% over the past six months.

“Ocado is no stranger to going in and out of the FTSE 100 and once again it looks set to move down a floor to the mid-cap FTSE 250 index,” Mr Coatsworth said.

“One of the most Marmite names on the UK stock market, investors either love or hate the quasi grocery/technology group and some even change their mind on a daily or weekly basis.

“On paper, the business model is focused on winning more grocery clients to power their online shopping warehouses, while also trying to improve the performance of a joint venture with Marks & Spencer.

“In reality, progress has been lumpier than gravy in a school canteen.”

Meanwhile, St James’s Place and RS Group have also been knocked off the FTSE 100 in the latest reshuffle.

Meanwhile, the FTSE 250’s reshuffle will see Alpha Group International, RS Group and XPS Pensions Group appear in the index.

However, National Express-owner Mobico, iron pellet producer Ferrexpo and specialist investment group Octopus Renewables Infrastructure Trust all face demotion from the FTSE 250.