Mothercare and Moss Bross drop from FTSE 100

The quarterly reshuffle of the UK’s benchmark index comprehended of the 100 largest companies by market capitalisation hasn’t be precisely soothing for the ailing apparel retail sector. Mothercare and Moss Bross have dropped from the FTSE 100 while Marks & Spencer has barely survived this cut.

As announced by the London Stock Exchange on May 31 maternity and childrenswear chain Mothercare and men fashion chain Moss Bros have been relegated from the FTSE All-Share to the FTSE Fledgling index after their market value shrank.

Mothercare and Moss Brothers saw stock value nearly halved over the past year

Shares in Mothercare and Moss Bros are down 48 percent and 46 percent respectively since January.

It’s worth noting that both retailers have issued profit warnings this year, badly affected by the High Street blues. Additionally, and in an attempt to recover from years of backlashes, Mothercare is in the throes of restructuring.

Market sources point to the shift to e-commerce and the still-to-recover consumer’s confidence as the main drivers behind this quarter’s reshuffle, which was based on the companies’ market capitalisation at the close of trading on Tuesday, May 29.

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, explain analysts quoted by the ‘Daily Mail’.

Image:Mothercare UK Web