EasyJet to re-join FTSE 100 in latest reshuffle; Endeavour up for demotion

Endeavour Mining is set to be demoted to the FTSE 250, along with Tullow Oil, whose shares have fallen 35% year-to-date.

HS2 contractor Kier Group is expected to be promoted to the FTSE 250 from the FTSE Small Cap, while IT professional services provider FDM Group is set to be ejected from the FTSE 250.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "While recovering pre-pandemic form is still proving highly elusive, easyJet’s continued progress has cheered investors, with shares up 9% year to date. The ‘revenge travel’ trend is still proving strong, with people still determined to see more of the world again after being cooped up at home during the Covid crisis. Consumers still appear to be ring-fencing chunks of disposal income to spend on airfares, seat upgrades and treats on board, with the desire to travel higher up wish-lists than home purchases like furniture and TVs.

"The company has shown particular prowess at selling extras to customers on flights, and that helped first quarter revenue jump 22%, with losses narrowing again. It’s also managed to largely ride out the turbulence caused by flight disruptions in the Middle East with summer bookings building well. With signs that the UK economy may dip only briefly into a mild recession and interest rate cuts eyed on the horizon there are hopes that travellers will stay confident and keep bookings brisk."

She pointed out that Endeavour, which has operations in West Africa, was left reeling from the abrupt departure of CEO Sébastien de Montessus, who was fired for serious misconduct in January for making an irregular payment instruction for $5.9m in relation to an asset disposal.

"Although he was replaced by deputy chair Ian Cockerill pretty swiftly, confidence has still been shaken in the gold miner, which operates in West Africa. Shares have fallen almost 30% year to date. It hasn’t helped that costs came in higher than expected at the last count, even though the company met output targets," Streeter said.