FTSE Reshuffle: Intermediate Capital Group in, Hargreaves Lansdown out

Intermediate Capital Group is ready to regain its blue-chip berth after a year in the cold, the latest index data revealed, as heavyweight Hargreaves Lansdown faces an unceremonious top-flight exit.

The private equity outfit – up a third this year to £4.5bn – seems set for a FTSE homecoming, winning plaudits for leveraging exposure to expanding private markets. But the good times may be over for investment services giant Hargreaves Lansdown after a 12-year stay. Its premium pricing model is now “unjustified” suggest analysts, savaging a firm some 18% lower this year at £3.4bn.

Among wider index rejigs, Asian equities play Asia Dragon Trust is flying high ahead of expected mid-cap promotion. Car dealer Halfords also seems headed for a return, fuelled by recent merger chatter. Miner Hochschild has struck gold this year, up 45%, joining Tullow Oil in riding the production growth wave out of the junior market.

Making way are bookie owner 888, payments newbie Cab Payments, landlord CLS plus Liontrust Asset Management – all victims of sliding valuations. Index changes typically spur heightened trading volumes. New rosters will be revealed next week after Wednesday’s close.