Beazley stock price hints at FTSE 250 return
DEALERS were gossiping about Beazley this week as they speculated it was once again close to winning a spot in the FTSE 250 in the latest index quarterly reshuffle.
Changes to indices are based on Tuesday's closing night prices, and are confirmed by the FTSE Committee the following day. A place in the FTSE 250 would not only be a boost to the Lloyd's syndicate's status, but would also lead to tracker funds being forced to mop up shares.
When Insurance Times went to press on Tuesday night, Beazley was trading at 92p. With a market capitalisation of about £330m, traders recalled that the stock is no stranger to the FTSE 250.
It was a constituent of the index shortly after it first floated at 73p in November 2002, and later dropped out.
Meanwhile, Investec Securities was bullish on LogicaCMG, which provides software solutions for the insurance industry. The broker slapped a buy recommendation and 205p fair value price on the company, following the group's recent upbeat annual general meeting statement. LogicaCMG is trading at around 172p.
' Yvette Essen is Stock market reporter and insurance correspondent for The Daily Telegraph