30 August 2017 ShareSave

The FTSE 100 closed greater on Wednesday, but Royal Mail is set to leave the ranks of the index.

The blue chip index ended up 27.83 points at 7,365.26.

In FTSE Russell's quarterly review of its constituents, Royal Mail will be relegated to the FTSE 250 together with distressed doorstep lending institution Provident Financial.

The postal service has actually been a FTSE 100 company since soon after being privatised in 2013.

On Wednesday, Royal Mail's shares closed at 390.5 p, providing the postal service a market capitalisation of ₤ 4bn.

A business's place in the FTSE 100 or FTSE 250 is identified by its market capitalisation at the close of trading on the day of the evaluation.

If a group has a value that puts it at 90th place or above, it will sign up with the FTSE 100. If it falls to the 111th position or below, it will be demoted to the FTSE 250.

Nicholas Hyett, equity expert at Hargreaves Lansdown, stated: "Royal Mail has actually lost its struggle to keep a place in the FTSE 100. We're unsure that's something you can lay at president Moya Green's door though, as the group continues to deal with difficult market conditions.

"Letter volumes have leaked away much faster than the group had anticipated, partly as a result direct marketing drying up as company confidence slumped after the EU referendum, while prices remains difficult in parcels."

Shares in Provident Financial, which just recently issued an earnings caution and parted methods with its primary executive Peter Crook, ended up 1.68% lower at 891.27 p to value the company at ₤ 3.1 bn. It will also come down to the FTSE 250.

On the other hand, NMC Health, the Abu Dhabi-based healthcare facility operator, will move up from the FTSE 250 into the FTSE 100 together with housebuilder Berkeley Group.

All the modifications from the evaluation be carried out at the close of organization on 15 September and will take effect from the start of trading on 18 September.

The FTSE 250 closed 88.67 points up at 19,616.56.

Northgate, the industrial lorry hire group, miner Petra Diamonds and building and construction firm Carillion will fall out of the FTSE 250. Those going up to the FTSE 250 include online wagering group 888 Holdings.

On the currency markets, the pound edged up by 0.48% versus the euro at 1.0843 euros. Sterling was partially higher versus the dollar at $1.2931.