Marks & Spencer will return to the FTSE 100 index

M&S was among the companies that founded the FTSE 100 index in 1984, but was downgraded to the mid-level FTSE 250 in 2019. Photo : Charlotte Ball

Marks & Spencer will return to the FTSE 100 index four years after his downgrade as the stalwart continues to improve his business.

The retailer will return to the blue-chip index with technicals supplier Diploma, as well as drug makers Hikma Pharmaceuticals and Dechra Pharmaceuticals, FTSE index compiler Russell confirmed on Wednesday.

They will replace homebuilder Persimmon and investment group Abrdn. , insurance firm Hiscox and chemicals business Johnson Matthey since Sept. 18.

M&S stock is up nearly 77% this year as CEO Stuart Machin leads a resurgence in a retailer that fights to avoid the fate of collapsed department stores like like Debenhams and House of Fraser.

Mr Machin wrote on LinkedIn: “Today is good news for M&S and it reflects everyone's hard work, but the sky didn't fall when we left the FTSE 100 four years ago, and it doesn't change our priorities.” today.

“Honestly, it's just another day and we're only as good as our customers who shop with us today tell us. That's what matters, and if we do the right thing for our customers, we do the right thing for our shareholders.”

M&S was among the companies that founded the FTSE 100 index in 1984, but in 2019 it was downgraded to mid-cap FTSE 250.

M&S was removed from the UK's top index after a drop in sales, pushing down its share price. falling below a required threshold.

The company's long-awaited recovery included the closure of more than 100 low-performing stores as part of a 10-year restructuring plan, as well as the sale of third-party brands along with its own products. .

Online sales have also helped revive popularity among shoppers after M&S was forced to support its e-commerce activities during the pandemic.

This is the second time. that Abrdn's was excluded from the FTSE 100 index in 12 months.

The Edinburgh-based management company was hit by high inflation and interest rates, which led to a decrease in demand for consulting services. Its share price has fallen by almost 30% over the past six months.

Meanwhile, Persimmon's exit comes amid a deepening downturn in the UK property sector amid high mortgage costs. The homebuilder's share price has fallen 28% over the past year.