FTSE 350 Quarterly update: EasyJet back in FTSE 100 after six month departure

FTSE 350 Quarterly update: EasyJet back in FTSE 100 after six month departure

After a turbulent year following rising fuel prices and Brexit uncertainty, EasyJet has returned to the FTSE 100 six months after dropping off. The company’s closing price was £13.07 on 3 December, after hitting a low of £8.55 six months prior. It attributed this to self-help initiatives focused on optimising late yields, alongside its operational resilience programme, which led to a 0.8% increase in revenue per seat for the second half of the year. The airline’s rise has also been assisted by a disruptive climate for major competitors, British Airways and Ryanair who suffered from strike action, alongside the collapse of Thomas Cook. This has resulted in higher demand, reflected in an 8.6% passenger increase from 2018, according to its year end results.

Alongside Easyjet, Just Eat has also been promoted to the FTSE 100 following the review. This is Just Eat’s third stint amongst the blue chips since 2017, however, the outcome of its current bidding war between Prosus and Takeaway.com, means this status may be short-lived. 

These latest additions to the FTSE 100 have seen insurer Hiscox demoted, following an onslaught of natural disasters denting its balance sheet. Mining company Fresnillo joins Hiscox in its descent to the FTSE 250, after gold production had dropped 5.2% from Q2 2019, which the company had attributed to ‘lower ore grade’ at mining site, Herradura. The company expects total silver and gold production ‘to be at the lower end of the guided ranges of 55-58 moz silver and 880-910 koz gold respectively’, in FY2019, according to its production report.

The FTSE 250 has seen some new arrivals, including telecoms company Helios Towers, who operate in Africa and listed on the LSE in October after a delayed IPO earlier in the year, and drinks manufacturer C&C group, who will also join the FTSE 250 for the first time. C&C delisted its shares from Euronext Dublin in October to focus on its LSE listing. The move follows its acquisition of suppliers Matthew Clarke and Bibendum last year, which saw the company’s activity in the UK significantly increase.

As the UK high street continues to suffer, Card Factory has found itself out in the cold, making an exit from the FTSE 250, as ‘sales were impacted by weaker footfall’, according to its Q3 Trading update. The ongoing high street crisis saw Card Factory’s stock price dip to £1.55 on December 3 – a 17% decrease over the past six months. 

The full breakdown of the Q4 2019 FTSE 350 reshuffle can be seen below:

 

All changes will take effect from 23 December 2019.

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