Inmarsat, Hikma and Conroy Gold

“The FTSE 100 rebounded as oil prices rose on reports that OPEC members will consider an output ceiling during their meeting which is under way in Vienna,” says AJ Bell Investment Director Russ Mould.

“A sustained recovery will be welcomed by Inmarsat. Its demotion from the FTSE 100 means that the oil price slide has claimed another victim amongst the ranks of the UK’s corporate elite, while Hikma’s promotion, just three months after its relegation, underlines the popularity of the global pharmaceuticals sector with investors.

“A weak first-quarter trading statement is proving to be Inmarsat’s downfall and its shares are languishing at levels not seen since late 2014. The satellite communications provider’s 5 May update flagged weak demand from the energy and shipping markets as key reasons behind a 2% drop in sales and a 41% plunge in pre-tax profits.

“Weak oil prices have already led to the ejection from the FTSE 100 of crude explorer and producer Tullow Oil, Cairn Energy and Essar Energy since 2012, as well as a drop into the FTSE 250 for oil equipment and services experts Wood, Petrofac, Weir and Amec since 2013.

“Inmarsat’s management will doubtless be hoping that spring’s oil price rally from below $30 to nearly $50 means demand will pick up sufficiently to propel the firm’s shares back into the UK’s leading index.

“Hikma first burst into the UK’s corporate elite in March 2015 only to drop out a year later after a profit warning of its own last November. Shares in the injectables and branded business have rallied from barely £17 to £23 since that demotion, amid rising hopes for a return to profits growth in 2016 after a rare dip last year.

“Investors rushed to Conroy Gold and Natural Resourcesas it started a drilling programme on its licences on the Glenish and Clay Lake-Clontibret gold prospects in Ireland. Conroy will drill a minimum of three holes on the Glenish gold target where previous channel sampling has shown levels of up to 1.3m@9.4g/t gold. This will be followed by drilling on the combined Clay Lake-Clontibret prospects with a projected target resource of 5 million oz. Its shares were up by more than 21% in lunchtime trading.”

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