[ad_1]
EasyJet is about to disappear from the FTSE 100 after six years, while the index of listed companies in London is reshaped this week, while the department store JD Sports is almost certain to be high.
Just Eat, the takeaway ordering platform that slips into the highest index also risks falling back to the FTSE 250, while the generic Hikma group could be relegated less than six months after getting a promotion.
ITV, the commercial broadcaster, Tui, the tour operator, and J Sainsbury, the supermarket chain, are also close to the exit threshold.
Marks and Spencer, one of the most vulnerable family-owned titles, is expected to escape. While its market capitalization fell below the level needed to stay in the FTSE 100, the group of stores benefited from a capital increase of £ 601 million launched last month, which should allow it to retain its place.
The composition of the FTSE Indices is changed quarterly to reflect changes in the market capitalization of the companies.
Companies are excluded from the FTSE 100 if they are no longer part of the 110 largest British listed companies, or promoted the FTSE 250 if they appear in the top 90 at the close of markets Tuesday.
Leading companies such as M & S, Sainsbury's, Tui and easyJet have stumbled in recent quarters, consumer confidence has deteriorated and structural changes in the retail and travel sectors have fall in their stock market valuations.
While M & S is expected to maintain its position for the next quarter, badysts warn that it will remain vulnerable in future reorganizations, as the benefits from its historically profitable food division have faded and the store has become more exposed to online shopping challenges and more agile rivals.
Laith Khalaf, an badyst at Hargreaves Lansdown, warned that the food delivery agreement between M & S and Ocado could contribute to the long-awaited growth, while maintaining shareholder risk.
"This is not the first time that M & S has flirted with the relegation of the index, and it will probably not be the last one," he said.
Despite the problems affecting some of the largest traditional retailers, JD Sports has been able to steadily increase its sales and share price, accumulating a market capitalization of nearly £ 6 billion. Its stock has climbed 60% over the last 12 months, with the retailer enjoying the growing popularity of sportswear and a historic deal for the purchase of US retailer Finish Line.
Helal Miah, an badyst at the Share Center, warned however that the group was not immune to street problems. "Even if the company is doing well, we should be wary of it, it offers a lean dividend yield and is trading at a higher valuation than its peers. Any disappointment will result in sudden profit taking. "
Source link
