The troubled stocks are being replaced by housebuilder Berkeley Group and United Arab Emirate healthcare chain NMC Health, which floated on the Unlisted Securities Market in 1984 and London Stock Exchange in 2012, respectively.
Analysts speculated that Provident Financial was a likely candidate for demotion, after the doorstep lender issued its second profit warning in a little over two months, causing its share price to plummet more than 70%.
Although majority shareholder Neil Woodford was criticised for his questionable holding at the time, days later, Provident’s share price recouped half of its losses after announcing a senior management shakeup.
On Thursday, its shares were down 2% to £8.73p.
Royal Mail has also been flagged as a potential FTSE 100 drop-out for some time now.
In addition to complaints of a stagnant share price, the newly privatised postal company’s reliance on its international parcels business amidst waning letter volumes was a cause for concern for investors.
Over the last 12 months, Royal Mail’s share price has dropped over 24% from £5.14p to £3.90p.
New entrants Berkeley and NMC Health, by contrast, have both outperformed, producing promising profits, which have boosted shares.
Though the housebuilder’s share price took a battering in the wake of the EU referendum, its shares have gone up by 31% year-to-date.
NMC Health, meanwhile, has seen its share price value surge by 98% over the year thus far, taking the stock from £13.55p per share up to £26.86p.
Following the announcement, Berkeley’s shares were up close to 1% at £37.33p per share, while NMC Health’s own were down 1%, trading at £26.82p per share.
FTSE Russell also confirmed Thursday that Alfa Financial Software Holdings, Sequoia Economic Infrastructure Income Fund and 888 Holdings would be replacing Carillion, Northate and Petra Diamonds in the FTSE 250 index.
