FTSE 100 Shake-Up Brings New Entrants
EasyJet and Rightmove Set to Exit FTSE 100 as IG Group and Tritax Big Box REIT Eye Promotion
FTSE Russell has signaled that EasyJet and Rightmove are on course to drop out of the FTSE 100 in the latest quarterly reshuffle of London’s leading stock indexes. The move could see IG Group and Tritax Big Box REIT promoted to the blue-chip benchmark.
FTSE 100 Reshuffle: What’s Happening?
The index review is conducted every three months by FTSE Russell, which is owned by London Stock Exchange Group. The reshuffle determines which companies are promoted to or relegated from the FTSE 100 and FTSE 250, based on market capitalization data.
The upcoming changes will be determined using market close data from Tuesday, March 3, with official confirmations expected the following day.
EasyJet and Rightmove Face Demotion to FTSE 250
According to indicative data collected last Friday, easyJet and Rightmove are set to move from the FTSE 100 to the FTSE 250, which tracks the next 250 largest UK-listed companies.
Shares in easyJet have fallen 7% over the past six months. The Luton-based airline recently reported a 52% increase in quarterly losses, citing investment spending in Italy and challenging competitive conditions.
Rightmove has experienced a sharper downturn, with its stock declining 45% over the same period. The online property platform warned investors that increased spending on artificial intelligence technology would weigh on profit growth, putting further pressure on its share price.
IG Group and Tritax Big Box REIT in Line for Promotion
FTSE Russell’s provisional list indicates that IG Group and Tritax Big Box REIT are on track to replace EasyJet and Rightmove in the FTSE 100. Both companies are currently constituents of the FTSE 250.
IG Group’s shares have climbed 13% over the past six months, supported by rising revenues and strong growth in the US market. Meanwhile, Tritax Big Box REIT has seen its stock rise 22%, boosted by expansion into data centres and continued demand for logistics and warehouse space.
Other Expected FTSE 250 Changes
In addition to EasyJet and Rightmove, CVS Group and The Schiehallion Fund are expected to join the FTSE 250 index.
On the other hand, cyber security firm NCC Group and Pinewood Technologies are projected to drop out of the FTSE 250.
Market Impact
Quarterly FTSE reshuffles often trigger significant trading activity, as index-tracking funds adjust their portfolios to reflect the updated constituents. Investors will be closely monitoring the official confirmation in early March, as the changes could influence share price movements and market sentiment across the UK stock market.
