Ocado moves up to FTSE 100 as M&S avoids relegation

Marks & Spencer (Frankfurt: 534418 - news) has avoided relegation from the FTSE 100 as online grocery retailer Ocado moves into the elite group of UK-listed firms, it has been confirmed.

Online gambling company GVC Holdings (Frankfurt: 6GI.F - news) will join Ocado in its promotion, while South African private healthcare provider Mediclinic International (LSE: MDC.L - news) and security company G4S (Copenhagen: G4S.CO - news) will fall into the FTSE 250 to make way.

The changes take effect on Monday 18 June.

M&S had been put forward by commentators as one to watch during the quarterly reshuffle, as the 134-year-old British company struggles against tough competition in clothing and food, its two main offerings.

Only a week ago they announced plans to close a total of 100 stores by 2022 under a five-year transformation plan, placing thousands of jobs at risk.

M&S, which has seen its shares fall 5.5% this year, has been a member of the blue-chip FTSE since the index began in 1984.

The re-shuffle was based on closing prices from Tuesday and M&S had been just nine spots away from falling into the FTSE 250 zone, according to Thomson Reuters (Dusseldorf: TOC.DU - news) data based on last Thursday's closing prices.

Ocado, on the other hand, has had a stellar year, announcing earlier this month an exclusive partnership with America's second-biggest supermarket chain - sending the UK online grocer's shares to record levels .

In March, they announced £363.4m retail revenues for the 13 weeks to 4 March and sales that were 11.7% ahead of the same period last year, despite a slower rate of growth they blamed in part on the bad weather .

The online grocery business had no comment on its promotion when contacted. Its shares had risen 1.5% during Wednesday but the FTSE announcement was made after the London Stock Exchange (Other OTC: LDNXF - news) closed for the day.

Its stock has rocketed by 124% year-to-date.

Meanwhile, new entrants to the FTSE 250 are Energean Oil and Gas, Integrafin Holdings, Laird (Other OTC: LARRF - news) and Premier Oil (LSE: PMO.L - news) . Making way for them are Marstons, Pets At Home Group, Purecircle (LSE: 3571906.L - news) and Woodford Patient Capital Trust.

Retailer Mothercare and fashion chain Moss Bros (LSE: MOSB.L - news) were both relegated from the FTSE All-Share (LSE: SHRE.L - news) to the FTSE Fledgling index after their market value shrank.