London-based speciality satellite operator Inmarsat is to lose its prestigious listing in the important benchmark FTSE 100 listing of top UK registered businesses. Inmarsat will be removed on June 20.
Inmarsat’s share price has fallen some 37 percent since early February following news of its tough trading position in its core maritime and government/military client base.
The news is relevant because simply being present in the FTSE 100 can create demand for a company’s shares given that many investor funds deliberately track the FTSE. The down-side is that removal from the FTSE can also mean investors departing from the stock.
With Inmarsat’s share price decline has come a reduction of its market capitalisation. Companies with a lower market capitalisation get listed in the FTSE 250 mid-cap index, which is where Inmarsat will find a home.