EasyJet is set to move back into the FTSE 100 after a four year absence in the index’s latest quarterly reshuffle.
The airline’s share price rose 28% over the last six months.
Meanwhile, Endeavour Mining is set to fall out of the FTSE 100 amid the departure of its CEO Sébastien de Montessus and higher costs weighing on the business.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The ‘revenge travel’ trend is still proving strong, with people still determined to see more of the world again after being cooped up at home during the Covid crisis. Consumers still appear to be ring-fencing chunks of disposal income to spend on airfares, seat upgrades and treats on board, with the desire to travel higher up wish-lists than home purchases like furniture and TVs.
“[Easyjet] has shown particular prowess at selling extras to customers on flights, and that helped first quarter revenue jump 22%, with losses narrowing again. It’s also managed to largely ride out the turbulence caused by flight disruptions in the Middle East with summer bookings building well. With signs that the UK economy may dip only briefly into a mild recession and interest rate cuts eyed on the horizon there are hopes that travellers will stay confident and keep bookings brisk.”
The FTSE All Share Index Quarterly Review is based on market capitalisations at the close on Tuesday (27 February), with the changes taking effect after the close of business on Friday 15 March.
See also: St James’s Place share price falls over 30% following full-year results
Elsewhere, HS2 contractor Kier Group is in line to be promoted from the FTSE Small Cap to the FTSE 250 alongside Wincanton.
They will replace IT services provider FDM Group and Tullow Oil.
“Shares in Wiltshire based logistics firm Wincanton jumped pushing it into the promotion zone for a potentially short-lived stint in the FTSE 250, after it confirmed that another buyer is circling the business,” said Streeter.
“GXO, which owns Clipper logistics, has indicated it is considering making a proposal to counter the bid from Ceva logistics. Whatever the outcome, it looks like Wincanton will be the latest London-listed company to leave the public market for private ownership, with suitors attracted by low valuations.
“Amid waves of tech lay-offs it’s been tough going for professional services provider FDM Group as it’s seen a fall in demand for IT consultants as clients turn more cautious. The company has blamed delays and deferred project decisions for the lower demand for placements.
“While the group has noted a gradual return of confidence in certain regions, potentially helped given that interest-rate cuts are on the horizon, shares have fallen by another 10% this year, as investors spy little light just yet at the end of the tunnel.”
