The
importance of being in a major index is that it enhances
both the reputation and stature of a company. In addition,
and perhaps more importantly, tracker funds follow the indices,
so demotion candidates will be sold heavily if their demotion
is subsequently confirmed. It pays to be prescient!
The tables’ statistics give a broad overview of each
candidate to enable investors to form their own view of
prospects for the company’s share price. The extra
column has been devoted to priceto- tangible book value.
