Mix And Match

Image source: Bardocz Peter, aPhoenix photographer - Shutterstock

What's going on?

The major UK stock market index is set to confirm this week which stocks itll be booting out and which itll be adding to its roster.

What does this mean?

Fortune is a fickle beast, which is why the FTSE 100 comprising the 100 biggest UK listed companies is regularly reshuffled to swap companies whose market values have risen with those whose have dropped. And while nothing is set in stone until its officially announced, there are some notable switcheroos expected here: ITV one of the countrys biggest broadcasters and Royal Mail one of the countrys biggest delivery services are likely to get the chop. Theyve seen their stocks fall around 40% this year, as ad spending and online deliveries respectively have dropped off. Oil driller Harbour Energy will probably join them, having seen its stock plunge after the UK government announced a 25% tax on energy companies profits last week.

Why should I care?

For you personally: Be proactive.
Those unlucky companies spots are set to be taken by another energy company Centrica, student housing firm Unite Group, and technology investor F&C Investment Trust all of whose stocks should get an extra boost when they arrive onto the index. See, billions are invested into funds that passively track indexes like the FTSE, and those funds are forced to invest in any new stock added to the index. So if you can get ahead of the game, you could benefit as they buy in.

The bigger picture: Londons burning.
If the names mentioned above didnt give it away, the FTSE isnt exactly brimming with innovative companies right now. But the UK is trying to change that, with regulators setting out plans last week to simplify the listing process in hopes of getting more startups to list in London. Needs must: new stock market listings in London are on track for their worst first half of the year since 2009.

Originally posted as part of the Finimize daily email.

The top 2 financial news stories in 3 minutes. Join over one million Finimizers

Read next

Relocation, Relocation, Relocation

Sign up to Finimize

Get the two most important global financial news stories each day. Sent at midnight UK time.

Get started with one email a day

The top financial news stories in 3 minutes.