In its best performance since May 2002, stock in EMI Group rose to 278.25p today (March 8), a 5.6% increase on Friday’s close. However, the trading level was below average, with 12.7 million shares changing hands, vs. an average 16.6 million. EMI stock was the fifth-biggest mover Monday on the FTSE 350 index.
Several financial institutions, including UBS and Bernstein, have recently issued favorable forecasts on EMI. “It seems that there is currently a much more positive sentiment toward the music industry,” says an industry source.
Eighteen months ago, EMI’s share price dropped as low as 78p, prompting FTSE Group, which operates London’s share index, to drop the company from the FTSE 100 blue-chip index at the end of September 2002.
However, EMI’s recent stock performance opens the door to a review of its status. FTSE Group on March 10 will announce the regular quarterly changes to the U.K. indices; sources suggest that EMI might qualify to re-enter the FTSE 100.
EMI declined comment.