22nd Feb 2022 21:57
(Alliance News) - Lockdown loser easyJet PLC is poised for a return to the FTSE 100 while pandemic winner Dechra Pharmaceuticals PLC, a veterinary products company, could face a demotion, according to indicative results from FTSE Russell late Tuesday.
FTSE Russell gave these indicative changes based on data from Friday last week. The actual quarterly FTSE index review will use data from next Tuesday's close, with confirmed rebalance changes announced after the market close on Wednesday next week, March 2 - meaning the actual results of the review could differ from these indicative changes.
The index changes will be effective on Monday, March 21.
"EasyJet is still on its flight path back to recovery, but the progress made on its turbulent journey looks set to push it back into the blue chip index. The lifting of travel restrictions and another relaxation of testing requirements in February came as a much needed shot of medicine after the set-back of the Omicron variant," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
easyJet first joined the FTSE 100 in 2013 before being demoted in June 2019. It rejoined the blue-chip index in December of that year to drop out again in June 2020 as the pandemic took its toll on the travel industry. The budget airline has remained in the FTSE 250 ever since.
Meanwhile, Dechra entered the FTSE 100 for the first time in December last year.
"Dechra Pharma clawed opportunity from the soaring popularity for new furry additions to the household during the pandemic but there remains caution about how long the pet boom will continue," said HL's Streeter.
The firm on Monday reported higher half-year profit and revenue amid increased consumer spending on pets. But Streeter noted that the UK's cost of living crisis could put pressure on pet spend.
"Dechra is in the business of keeping animals healthy throughout their lifetimes and although demand for the pharmaceutical company's veterinary products has been strong, there is a risk that with incomes facing a squeeze from rising inflation spending per head could decline," she said.
There could be a raft of changes made within the FTSE 250, FTSE Russell indicated, with Clipper Logistics PLC, Restaurant Group PLC, Ruffer Investment Company PLC, Standard Life Private Equity Trust PLC, Temple Bar Investment Trust PLC and Urban Logistics REIT PLC all poised for promotion.
These firms would be replacing current mid-cap stocks Baillie Gifford Shin Nippon PLC, Capita PLC, Cineworld Group PLC, Hochschild Mining PLC, NCC Group PLC and Trustpilot Group PLC.
By Lucy Heming; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
easyJetDPH.LCLG.LRTN.LRufferTemple Bar Investment TrustUrban LogisticsBaillie Gifford Shin Nippon PLCCapitaCINE.LHochschildNccTrustpilot