Kazakhmys loses positions in London 11 марта 2013, 20:17
- Found a bug?
- Select it and press Ctrl + Enter
Tengrinews,kz stock photo
Kazakhmys group will be excluded from FTSE-100 and moved to FTSE-250 index, KazTAG reports citing Halyk Finance.
In late February 2013 Kazakhstan's copper giant Kazakhmys announced that it would be slashing its dividend for 2012 to reflect falling profits. The company also said that its CFO Matthew Hird would step down in May, when its Chairman Vladimir Kim is also due to retire.
The London-listed Kazakhstan mining company declared a more than 30 percent drop in 2012 core profit, excluding the impact of its share in its rival ENRC, also a Kazakhstan mining company. It explains the drop with weak prices that failed to offset rising costs, according to Reuters. Kazakhmys owns 26 percent in ENRC.
Kazakhmys has announced that it plans to replace Matthew Hird with Andrew Southam and make Simon Heale, an ex LSE chief the new chairman.
The decision to drop Kazakhmys from FTSE 100 was made by the FTSE committee on March 6. The changes are due to come in effect from the start of trading on March 18.
According to the latest quarterly review of the FTSE 100 published in early March the Kazakhstan copper miner is dropping out together with property group Intu. Budget airline easyJet and London Stock Exchange will join the FTSE elite instead.
“Exclusion from FTSE-100 index will have a negative effect on the pricing of the shares. Membership in the index was favorable for the liquidity. Besides, index funds keep shares of the company that are members of the index in their portfolio,” Halyk Finance’s analysts say.
Kazakhmys is the biggest copper producer in Kazakhstan and one of the leading producers in the world. The company owns 16 acting mines, 10 mining plants and 2 copper-smelting plants. Kazakhmys also produces gold, zinc and silver. The production process is maintained by local supplies of energy and a significant railroad infrastructure. The company has around 60 thousand employees.
According to the FTSE Group, FTSE-250 is a capitalization-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange.