Morrisons faces further setback

Morrisons could get booted out of the London Stock Exchange’s elite FTSE 100 index next week following a sharp drop in its share price amid falling sales, profits and market share.

The UK’s fourth biggest grocer could find itself replaced by credit lender Provident Financial, which is also based in Bradford.

London Stock Exchange said Morrisons was among a number of companies that could face demotion, but a decision won’t be made until next Wednesday.

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Morrisons’ shares have fallen by more than a quarter since they hit a high of 208p in March shortly after the appointment of new chief executive David Potts.

A demotion looks likely if Morrisons’ shares stay at their current levels.

Analysts at Jefferies said other contenders for relegation include security firm G4S and engineer Meggitt.

Morrisons narrowly missed relegation in the June and September reviews.

Demotion could hit the grocer’s share price as investment funds buy heavily into the FTSE 100 index.

A decision on the changes will be made on December 2 and they will take effect on December 21.