Imperial Brands Drop Out of FTSE 100 Index
London Stock Exchange FTSE Group Decision
Imperial Brands has been dropped from the FTSE 100 Index by the FTSE Group, a change that will take effect on 22nd June 2023.
The FTSE 100 Index is a stock market index that tracks the performance of the 100 largest companies listed on the London Stock Exchange. Imperial Brands, a tobacco company, has been a member of the index since 1996.
Reasons for Exclusion
The FTSE Group's decision to exclude Imperial Brands was based on a number of factors, including the company's declining share price and market capitalization.
Imperial Brands' share price has fallen by more than 50% in the past five years. The company's market capitalization, which is the total value of its shares, has also fallen significantly, from over £30 billion in 2018 to around £10 billion today.
In addition to its financial performance, the FTSE Group also considered Imperial Brands' environmental, social, and governance (ESG) factors when making its decision.
Imperial Brands has been criticized for its role in the tobacco industry, which has been linked to a number of health problems. The company has also been criticized for its environmental practices, including its use of plastic packaging.
Impact on Imperial Brands
The exclusion from the FTSE 100 Index is a blow to Imperial Brands. The index is widely tracked by investors, and exclusion from it could make it more difficult for Imperial Brands to attract new investors and raise capital.
The exclusion could also lead to a decline in Imperial Brands' share price. Investors often sell shares in companies that are excluded from the FTSE 100 Index, and this could put further pressure on the company's share price.
Reaction from Imperial Brands
Imperial Brands said it was "disappointed" by the FTSE Group's decision to exclude it from the FTSE 100 Index.
The company said it was "committed to improving its ESG performance" and that it was "taking steps to address the challenges facing the tobacco industry.
