EasyJet Plc is set to return to Britain’s benchmark FTSE 100 index six months after the budget carrier was demoted, the benchmark compiler said.
The airline will replace specialist insurer Hiscox Ltd., which will be relegated to the FTSE 250, according to a statement from FTSE Russell. The index review will be based on closing prices on Tuesday and the final announcement will be made after the market close on Wednesday, FTSE Russell said.
Luton, England-based EasyJet suffered in the first half of 2019 as investors reacted to its cautious outlook and as the UK’s faltering attempts to leave the European Union weighed on demand for air travel. But it stabilized in recent months and jumped in October when it said earnings would hit the top end of its guidance as strikes at rival airlines drove customers onto its aircraft.
Bermuda-incorporated Hiscox suffered a hefty slide following its third-quarter earnings in November. Brokers cut their ratings after the report raised concerns about a turnaround in the group’s retail unit and materially higher catastrophe costs in 2019. It has been a FTSE 100 constituent for a year.
FTSE 100 membership is coveted not just in terms of prestige, but because it brings investment from funds that follow the index.
Joining Hiscox in the FTSE 250 will be joined by Irish cider maker C&C Group Plc, which canceled its Dublin listing in September to leave it with only London-traded shares, and African phone towers owner Helios Towers Plc, which listed in London in October. Just Group Plc also joins the gauge.