LIVE MARKETS-WPP to get the boot from FTSE 100, highlights more pain for ad firms

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WPP TO GET THE BOOT FROM FTSE 100, HIGHLIGHTS MORE PAIN FOR AD FIRMS

British ad firm WPP is likely to be booted from the premier UK stock index in the upcoming index review, marking another blow for global ad companies which have recorded sharp losses this year.

FTSE Russell late on Tuesday released indicative changes to UK's main blue-chip index FTSE 100 .FTSE index which saw advertising firm WPP WPP.L relegated to the FTSE 250 .FTMC midcap index.

WPP shares have plunged almost 64% this year as a string of disappointing earnings, guidance cuts and a CEO re-shuffle hit its stock, with the latest coming in October when it warned on profit after a downturn at its flagship media buying agency.

The British firm, which has suffered a string of big client losses lost its crown as the world's biggest ad group to France's Publicis PUBP.PA last year.

While Publicis PUBP.PA has taken the crown, its shares have also not been spared as they have dropped almost 20% this year .

Contrary to WPP, Publicis' management remains upbeat as the company lifted its full-year organic growth forecast for the second time this year back in October.

Coincidently, S&P Dow Jones Indices late on Monday announced U.S firm Interpublic Group IPG.N will be removed from the U.S. benchmark S&P 500 .SPX, but that is because rival Omnicom Group OMC.N is set to acquire the company.

U.S. ad firms have not done that well either with their stocks having clocked double-digit declines this year.

FTSE Russell said confirmed rebalancing changes will be announced after market close on December 3. Landlord British Land BLND.L is expected to take WPP's place.

(Shashwat Chauhan)

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