Market experts are braced to watch the low-cost company lose its spot in Britain’s blue chip share index after troubles in the industry, including rising fuel costs and waning consumer demand, saw a pre-tax loss widen over the winter period. easyJet reported a pre-tax loss of £275million for the six months to March 31. Its ejection would mark the end of a more than six year tenure in the premier shares league. easyJet shares were down 1.65 percent to 856.80 at the time of writing.
Meanwhile, high street giant Marks & Spencer looks to avoid relegation “by the skin of its teeth” following a £601 million investor cash call.
M&S shares have tumbled by nearly a fifth over the past six months as sales and profits have come under pressure.
The share price for M&S was down 0.53 percent to 224.00.
If M&S was to be booted out, it would mark the first time the supermarket has been relegated from the FTSE 100 since the stock index was launched in 1984.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “M&S now looks like it’s going to avoid relegation from the FTSE 100 by the skin of its teeth, and largely thanks to an extra £601 million of capital raised through a rights issue.
“While the fresh capital won’t actually be available until after the FTSE reshuffle calculation, we expect the index provider to give M&S the nod, on the basis the money’s in the post.”
He added easyJet looks to be “going down for sure”.
easyJet and M&S have been contacted for comment by Express.co.uk.
The FTSE 100 reshuffle is due to take place on Wednesday and will be based on Tuesday’s closing share prices.
Other firms experts fear are close to being pushed out Just Eat, Hikma Pharmaceuticals and an “outside chance Sainsbury’s and ITV get involved in the dogfight”.
JD Sports is expected to make its debut in the blue chip index after seeing a surge in share prices amid wider high street gloom.
For JD Sports, the promotion would cap a successful recent shares run for the chain and comes in stark contrast to the stock market fortunes of its main rival Sports Direct.
JD Sports is likely to be joined on the list for promotion by Cambridge-headquartered software specialist Aveva, which recently sealed a deal to merge with France’s Schneider that effectively doubled the company’s size.
The next set of stock promotions and relegations are set to take effect on June 24.