The changed face of London’s main market was made clear on Wednesday as a FTSE reshuffle saw two travel giants stung by the Covid-19 crisis drop out of the blue-chip index.
Cruise operator Carnival and airline easyJet will both lose their spots in the FTSE 100 later this month, having seen their prices devastated by a severe drop in global travel.
The other fallers are aeroplane parts-maker Meggitt and British Gas owner Centrica – the latter of which has been in the top index, in one form or another, since 1986.
Taking their spots will be cyber security firm Avast, Ladbrokes owner GVC Holdings, B&Q owner Kingfisher – which is regaining its spot in the top index after just a quarter among the mid-caps – and home repairs group Homeserve.
FTSE 100 companies are automatically demoted if their market cap slips to 110th place or lower on London’s main market, while any smaller firm grabbing 90th place or above is automatically promoted.
The Share Centre’s Helal Miah said the moves have been “heavily influenced” by the coronavirus crisis.
There is evidence of the impact of lockdown measures upon the risers as well. Avast has benefited from a widespread shift to working from home, forcing many people to ramp up their security arrangements.
The FTSE 250 exits include food supplier Bakkavor, pub chain Marston’s and travel operator Stagecoach, all of which have seen their trading battered by Covid-19.
The changes, which are based on Tuesday’s closing prices, will take effect on June 22.