Lonmin and Stagecoach to drop out of FTSE 100

By Simon Falush

LONDON (Reuters) - Miner Lonmin (LMI.L) and transport operator Stagecoach (SGC.L) are among five companies set to exit the FTSE 100 .FTSE next week, as falling metal prices and a domestic recession take their toll, data showed on Friday.

The companies are likely to be replaced by government services firm Serco Group (SRP.L), insurer Amlin (AML.L), retail group Home Retail (HOME.L) and gold miner Rangold Resources (RRS.L) after a quarterly rejig, the index compiler said.

Platinum miner Lonmin, Mexican silver miner Fresnillo (FRES.L), oils services companies John Wood Group (WG.L) and Petrofac (PFC.L) and Stagecoach will drop into the mid-cap FTSE 250 .FTMC on December 22, according to figures from the index compiler.

Companies outside the FTSE 100 that grow to rank among the 90 largest by market capitalisation are automatically promoted, while the FTSE 100 firms with the lowest value or that fall to 111th spot or below drop into the FTSE Midcap 250 index .FTMC.

The index of mining stocks .FTNMX1770 has slumping by over 65 percent this year, with Lonmin suffering as platinum prices slipped nearly 50 percent.

Similarly, miner Fresnillo (FRES.L) is expected to drop out of the blue-chip index just a quarter after it entered as the price of spot silver, trading at just under $21 in March, was below $10 on Friday.

Bus and rail operator Stagecoach group shares have slid to below 130 pence from above 330 pence in September, and the company warned on Wednesday of a potential slowdown in its UK train business due to the impact on London commuters of the economic slowdown.

Oil services companies Petrofac and John Wood Group have been pressured by a slide in the oil price from a peak of $147 per barrel in July to below $45 by early December.