FTSE 100 constituents Burberry and Easyjet are expected to be eliminated from London’s main market next month during a reshuffle. The main market’s quarterly rebalance is due on 20 September, with the review being based on prices at close on 3 September. Easyjet managed to claw back into the FTSE 100 in March , but the low-cost carrier has struggled to maintain this success, with its stock price dropping 17 per cent in the last six months.
“The shock of the pandemic may now be in the rear-view mirror, but Easyjet has yet to regain its pre-crisis momentum,” explained Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Ryanair’s disappointing recent performance put investors on edge and although third quarter numbers landed better than expected, there are still worries that the pent-up demand for travel among consumers may start running out of steam.” Meanwhile, Burberry’s stock price plunged to a 14-year low this month , making it among the FTSE 100’s worst performers of 2024 so far.
Sales at the luxury retailer were revealed to have fallen by 21 per cent in its results last month, and the firm suspended its dividend as a result. “The costs of refreshing the store estate have also been onerous and it will take time for Burberry’s brand elevation to reap rewards,” added Streeter. Those set to take the place of the two companies in the main market are real estate investment trust Tritax Big Box and insurer Hiscox.
Tritax recently complet.