Troubled firms Provident Financial and Carillion facing demotion in stock market changes
Troubled firms Provident Financial and Carillion are set to face demotion in today's stock market reshuffle after seeing their shares plunge amid trading woes.
The latest quarterly review is expected to see sub-prime lender Provident Financial booted out of the FTSE 100 Index following last week's spectacular share losses.
Shares in the group tumbled by 66% last Tuesday in one of the FTSE's biggest one-day falls after it warned over heavy losses following a period of "substantial under-performance".
The calamitous week also saw its chief executive Peter Crook resign and Provident admit regulators were investigating products sold by its Vanquis banking arm.
Shares have recovered some of the ground lost, but likely not enough to save it from relegation to the FTSE 250 Index when the FTSE Russell EMEA Committee confirms the results of the review after market close today.
Provident is on course to be replaced in the premier share league by UAE-based healthcare provider NMC Health, with the reshuffle based on last night's closing prices.
Construction firm Carillion is another stock due for disappointment in the review as it looks to be downgraded to the small cap index after a shock profit warning in July wiped almost £600m from its stock market value. Chief executive Richard Howson also stepped down last month as the group said it would need to bolster its balance sheet and was struggling to stay within borrowing limits.