Frasers Group set to return to FTSE 100

By

Sandra Halliday

Published
Sep 12, 2022

​Frasers Group will make a FTSE 100 comeback, rejoining the elite index of the biggest shares on the London Stock Exchange.

The company dropped out of the index six years ago as its value declined, but should make the grade when the new make-up of the ‘Footsie’ is announced on Tuesday. This is due to its rising share price and a space being vacated by defence firm Meggitt that has been bought by a US company.

Being in the FTSE 100 means that index-tracking investment funds have to buy its shares. It’s also a prestigious index to be a part of and all that means that its share price could rise. 

The shares are currently changing hands for around £8 each, giving the business a market capitalisation of around £3.8 billion.

At that price, they’re at levels not reached since 2015 when the share price began a long decline that wasn’t halted until earlier this year. 

At their low point in spring 2020, the shares changed hands for less than £2 each. But a series of canny acquisitions, better corporate governance and some good results announcements have seen a steady climb in the business’s value.

However, the shares are lower than the £9.42 they reached back in July before the cost-of-living crisis really dented the outlook for consumer-facing businesses.