London's blue-chip share index mostly likely will not list property portal Rightmove this week after a stalling housing market and increased competition. Rightmove is part of a list of candidates that might be relegated from the FTSE 100 Index after the FTSE Russell EMEA Committee decides on the results of its quarterly review.
Since hitting an all-time high in June, the stock has fallen 7 percent due to fears over the health of the property market and pressure from rivals such as Zoopla and Purplebricks.
Helal Miah, an investment research analyst at The Share Centre, said Rightmove has suffered a “tumultuous year”, with intense competitive pressures leaving it in a “vulnerable position”.
He added: “A weak housing market in London and the South-east and what the group describes as a ‘muted sentiment towards the UK property market’ continues to weigh.”
Worries over its prospects failed to ease despite interim results in July revealing a 10 percent rise in revenues to £131.1million at the property portal and operating profits up 12 percent at £98.2million.
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