Buzzi seen joining Italy's blue chip stock index, ousting Erg
MILAN, Nov 29 (Reuters) -Cement group Buzzi Unicem BZU.MI is expected to join the Italian blue-chip stock index FTSE Mib .FTMIB following a review at the end of next month, traders said on Friday, replacing renewable energy group Erg ERG.MI.
FTSE Mib's composition is reviewed every three months on the basis of companies' market capitalisation and the liquidity of their shares.
The deadline for calculations related to the index update expired on Monday, with Buzzi expressing a potential index weight of around 0.72% and Erg slipping to 0.22%.
Buzzi has risen over 46% this year to reach a market valuation of some 7.75 billion euros ($8.19 billion), boosted partly by expectations of increased spending on infrastructure after Donald Trump election in US and post-war reconstruction in Ukraine.
Its share price hit an all-time high of 42.44 euros on Nov. 14.
FTSE Russell, the group which manages the FTSE Mib composition reviews, will unveil its index changes on Dec. 4. They will be effective from Dec. 23.
No other changes are expected, one of the traders said.
($1 = 0.9466 euros)
Giancarlo Navach, editing by Gavin Jones
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