Technoprobe seen entering FTSE MIB after rally fuelled by AI demand, replacing Hera
Technoprobe seen entering FTSE MIB after rally fuelled by AI demand, replacing Hera By Giancarlo Navach
MILAN, Aug 31 - Italian semiconductor testing company Technoprobe (TPRO.MI) is on course to join Italy's blue-chip FTSE MIB index at the end of September, traders said on Monday, replacing regional utility Hera HRA.MI and increasing the artificial intelligence component of the benchmark index alongside with STMicroelectronics STMMI.MI.
The composition of the FTSE MIB's 40 companies is reviewed every three months on the basis of their market capitalization and the liquidity of their shares.
The data used for the latest index review was calculated through Aug. 24. Based on those calculations, Technoprobe would represent about 0.55% of the index, while Hera's weighting would fall to around 0.40%.
Shares in Technoprobe have risen more than 128% since the start of the year, driven by strong investor interest in companies exposed to the artificial intelligence boom.
The stock hit an all-time high of €38.58 on June 22 and was trading at around €27.66 on Monday.
The company has a market capitalization of about €18.2 billion.
"Technoprobe's addition has been expected for months," one trader said.
Companies on the reserve list for a potential return to the FTSE MIB include tyre maker Pirelli PIRC.MI, Banca Generali BGN.MI, software company Reply REY.MI and Hera.
The changes to the index will be announced on Sept. 2 and will take effect on Sept. 21.
(Editing by Gavin Jones)