Baltimore Technologies will join the elite list of companies that makes up Britain's FTSE 100 index of leading shares from March 20th following a quarterly review of the companies that make up the index.
Other Irish stocks to benefit from the review of the various FTSE indices include pharmaceuticals group Elan, which has been included in the FTSE Eurotop 300, and Iona Technologies, which joins the FTSE EuroMid index.
Baltimore's inclusion on the FTSE 100, where, based on its current market capitalisation it has a ranking of 70, should lend support to the share price. The FTSE 100 is a key index for pension funds and tracker funds seeking exposure to the British market and membership means companies automatically register on fund managers' radar screens, boosting demand for the shares.
The review of the FTSE 100, the biggest overhaul in the index since its introduction in 1982, confirms a shift from "old economy" stocks to fast-track technology shares. In all, nine high-flying technology and related stocks displaced "old economy" ones including brewers, utilities and building material firms.
Among those joining the index with Baltimore are Cable & Wireless, Internet provider Freeserve and Thus, the Internet spin-off from Scottish Power.
Stocks which will be demoted after the close of business on March 17th come from more traditional sectors and include longstanding blue-chips such as Associated British Foods - which sold its Quinnsworth stores in Ireland to Tesco - drinks group Allied Domecq, leisure firm Whitbread and brewers Scottish & Newscastle.
Among the factors taken into account when deciding whether or not to admit a company to the FTSE 100 are its size in terms of market capitalisation, liquidity, the size of its free float and its volatility. Only British companies can join the index. Baltimore is eligible as it is registered and domiciled in Britain after its takeover by Zergo 18 months ago.
Meanwhile, Elan has been promoted to the FTSE Eurotop 300 index of top European shares, where it occupies 155th place.
Its inclusion should help the company, listed in New York and Dublin, to expand its shareholder base beyond the US.
Although Iona merited a place in the FTSE EuroMid index of mid-cap European shares, food group Glanbia was a casualty of the review process, losing its place in the index.
FTSE International, which creates and manages the indices, is jointly owned by the London Stock Exchange and the Financial Times.
