Tonight:
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Such has been the pace and the scale of the stock market sell-off since the start of the year that the profile of the benchmark FTSE 100 index is set for another major makeover.
When soundings are taken at the close of business tonight, at least six blue-chip companies could face the chop.
Four of those come from the financial and property sectors - among some of the hardest hit by the credit crunch and the recession.
They include private-equity investor 3i and, ironically, shares in the London Stock Exchange itself.
Property developers Hammerson and Liberty International also face relegation. A clutch of property companies, including Hammerson, up ¼p at 217¼p, have been forced to tap shareholders this year for extra cash in order to reduce debts in the face of collapsing commercial property values.
Shares in the LSE, up 15p at 384¼p, have slumped from 510p since the start of the year, reflecting the drop-off in turnover. Back in their heyday, the shares were driven towards 2000p by five bid approaches.
3i Group, down 10¾p at 186.8p, has also suffered, with the value of its investment portfolio dropping sharply, pushing up its gearing.
It started 2009 at 272p. Liberty International, up 22p at 303¼p, specialises in developing shopping centres and has been hit by the collapse in property values and retail spending. It has fallen from 478p since the start of the year.
Others facing the chop include buses and trains operator FirstGroup, 0.4p firmer at 198.3p, and the world's biggest plumbing equipment supplier Wolseley, 13p better at 155p, which last Friday was forced to tap shareholders.
Among those being promoted are another two mining companies - Mexican-based Fresnillo, and Lonmin, up 158p at 1236p - and oil-industry services provider Petrofac, 9¼p better at 477¼p.
Also likely to make an entry is discount airline easyJet, 2p cheaper at 284¾p, along with Foreign & Colonial Investment Trust, down 2¾p at 187½p, and services provider Intertek, up 19½p at 881p.
Companies making up the Footsie 100 usually qualify on the size of the their free-float stock market capitalisation.
Up to 15 companies could drop out of the FTSE 250 index, notably logistics outfit Wincanton, 3½p dearer at 115p property developer Brixton, unmoved on 17¾p, Shanks, ¼p firmer at 53½p, telephone directories publisher Yell, ½p softer at 15p, and Punch Taverns, 1½p better at 34¼p.
They could be replaced by old favourites such as Premier Foods, steady on 27¾p, Taylor Wimpey, ¾p higher at 18p, electronics group Pace, 5½p cheaper at 74½p, and social housing group Mears, 11p down at 230p, which came out with full-year results today.
It promised to be a better session for HSBC following yesterday's sell-off, which saw the shares slump to their lowest in 14 years.
That was prompted by hedge funds selling the shares short ahead of them going ex-rights this week.
They rallied 40p to 389p on news that Hong Kong authorities have launched an investigation into a late sell-off in yesterday's auction.
Also making up lost ground in the financial sector were Legal & General, up 3.7p at 26.7p, Old Mutual, 3.6p ahead at 34.4p, and the UK's biggest hedge-fund operator Man Group, gaining 20.6p at 176.1p. Barclays recovered an opening fall to trade 10.5p up at 71.9p.
Brokers say Barclays may be put off the Government's asset-protection scheme by the cost of the insurance, which in the case of Lloyds Banking Group, up 3.9 at 47.6p, reached £15 billion, and may result in the Government raising its stake by as much as 77%. Macquarie Research has raised Lloyds from underperform to neutral.
The revival of the financial sector breathed fresh life into the rest of the market and accounted for around 25 points of the advance in the FTSE 100 of 52.45 to 3594.85.
Shares made a blistering start to trading on Wall Street this afternoon, with a futures-led rally lifting the Dow 141.46 points to 6688.51.
Reader views (2)
I wish you doom mongers would shut up. Half of the problem with the economy and share prices is people like you are constantly harking on about bad news. Bads news sells papers, so you all try to jump on the bandwagon of bad news. Added together with shorters (which should be banned) means that even financially strong stocks are being constantly undermined. Why don't you start talking about the postive companies for a change?
- David, London
Against a backround of falling asset prices, lack of readily available finance, and business unprofitability, shares can only go down.
How long? Given that the issues in todays economy go back many years, and the global efforts to slow destuction of the economy, and the high level of debt, I beleive it will take much longer to turn around than if he economy waas left to find its own bottom.
I say at least 5 years more to turnaround and share prices reaching todays levels again. Gold seems a sensible alternative to preserve wealth against inflaton that will come out of the bottle and reduce the value of debt.
- Dave Davies, Basingstoke, Hants
