Blue-chip stocks prepare for top-flight index reshuffle

Scottish Mortgage Investment Trust and Weir Group could return to the FTSE 100 this week in the latest stock market reshuffle, while the Brexit effect on the UK property market could knock Travis Perkins and Intu Properties out, according to the Share Centre.

Glasgow-based engineer Weir Group could be promoted to the FTSE 100 index. Picture: John Devlin

Other companies in the running to be downgraded from the blue-chip index when the FTSE Russell EMEA Committee confirms the results of its quarterly review include Dixons Carphone, Hikma Pharmaceuticals, and outsourcing giant Capita.

Sign up to our daily newsletter

The i newsletter cut through the noise

However, Scottish Mortgage Investment Trust, which is weighted towards international investments, stands to benefit from the weaker pound.

Helal Miah, an investment research analyst at the Share Centre, said the property sector as a whole has been “hit hard” since Brexit, adding: “In the aftermath of the vote, we felt it prudent to advise investors to take a step back – at least until the picture becomes a little clearer.”