Successful float could see Yorkshire Bank promoted to FTSE 250

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Yorkshire Bank and sister Clydesdale Bank could be promoted to the FTSE 250 index following the recent flotation of parent company CYBG.

A promotion for CYBG would follow its initial public offering in February when it was spun off from National Australia Bank.

CYBG’s shares were worth 180p when it floated in February, but have risen to nearly 280p as it has been slashing costs and notching up a strong lending performance.

Recently floated challenger bank Metro has also seen an improvement in its share price and is on the list of small cap stocks that are up for possible entry to the FTSE 250.

It would come as a boost to Metro Bank after a shaky start to life as a listed company, with the group forced to cut the price of its shares to £20 from £24 on flotation in March as turmoil gripped the markets.

Shares have since risen to over £22 and the group recently said it was heading for its first profit after a record start to the year.

Meanwhile, designer shoe brand Jimmy Choo could be given the boot from the FTSE 250 index under the latest stock market reshuffle.

Jimmy Choo is among a number of second-tier stocks that could get demoted into the small cap index when the FTSE Russell EMEA Committee confirms the results of its quarterly review today.

Jimmy Choo’s shares have suffered amid woes in the luxury goods sector sparked by the economic slowdown in China and worldwide, despite robust results.

The group, whose shoes were made famous by the character Carrie Bradshaw in the hit US TV show Sex And The City, said in March that strong growth in Asia and Japan helped retail like-for-like sales rise 1.1 per cent in 2015, while underlying earnings rose 1.5 per cent to £51m.

The reshuffle could also see satellite communications firm Inmarsat kicked out of the FTSE 100 index of leading shares.