LONDON, June 1 (Reuters) - Hikma Pharmaceuticals will be promoted to Britain’s benchmark FTSE 100 equity index after a sharp rally in its shares since March, while satellite company Inmarsat will drop out of the FTSE.
A spokesman for the London Stock Exchange announced the change via telephone on Wednesday.
Getting into the FTSE 100 can often fuel further demand for a company’s shares, since funds that track the FTSE or invest in the index can then add that stock to their portfolio, while the inverse is true if a company falls out of the FTSE 100.
Shares in Hikma, which reiterated its guidance for 2016 last month and said it continued to expect full year group revenue in the range of $2.0 billion to $2.1 billion, have surged 45 percent since mid-March.
On the other hand, Inmarsat has fallen 37 percent since early February as the company is facing tough trading conditions in its maritime and government markets businesses.
A slowdown in the global economy has hit its shipping-related operations, one of the main engines for cash flow in the satellite communications group. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)