- easyJet is set to land back in the FTSE 100 as pent-up travel demand continues.
- Endeavour Mining likely to leave the topflight amid CEO departure and higher costs weighing on the business.
- HS2 contractor Kier Group set to be promoted from the FTSE Small Cap to the FTSE 250.
- Wincanton to join Kier group for short-lived stint in the FTSE 250
- IT professional services provider FDM Group set for relegation from FTSE 250 amid hiring headwinds
- Tullow Oil look set to be relegated from the FTSE 250 as operational problems persist.
The FTSE All Share Index Quarterly Review is based on market capitalisations at the close yesterday and will be announced after the market close today.The changes will take effect after the close of business on Friday 15th March.
Susannah Streeter, head of money and markets, Hargreaves Lansdown.
‘’While recovering pre-pandemic form is still proving highly elusive, easyJet’s continued progress has cheered investors, with shares up 9% year to date. 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. The company 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.
Endeavour Mining which has operations in West Africa is about to drop out of the big league after the company was left reeling from the abrupt departure of CEO Sébastien de Montessus. He was fired for serious misconduct in January for making an irregular payment instruction for $5.9 million, in relation to an asset disposal. Although he was replaced by deputy chair Ian Cockerill pretty swiftly, confidence has still been shaken in the gold miner, which operates in West Africa. Shares have fallen almost 30% year to date. It hasn’t helped that costs came in higher than expected at the last count, even though the company met output targets.
Enthusiasm has risen for construction company Kier Group as it unveiled a robust order book and showed strength in dealing with supply chain challenges and inflationary costs. It’s staging a turnaround, and now appears back on track after a highly difficult period when it appeared to be on the brink of bankruptcy and was hit hard by the pandemic. Winning HS2 contracts saved the company from collapse and now its restructuring plan is bearing considerable fruit with balance sheet rebuilding underway. it is considered to be well placed to continue to benefit from UK government infrastructure spending and it has a growing order book, rising from £10.1 billion in June to £10.5 billion in October. Investors have been encouraged that the company made a good start to the financial year, with trading higher than the same period 12 months earlier. That’s given a lift to the share price, which is up 24% year to date.
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. 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.
Tullow Oil shares have fallen 35% year to date, pushing it into the relegation zone. The group has been affected by operational and financial challenges over recent years and here had been hopes that prospects were looking up with rising production at its Jubilee field, offshore Ghana, with five wells expected to come on stream in 2024. However, it’s been beset by further difficulties after it was forced to stop work on its Kenyan oil fields and its trucking operations due to security issues, adding to fresh investor caution about its resilience.”
