2020欧洲杯体育足彩外围appTravel agent TUI is on track to lose its blue-chip status after the sell-off triggered by the coronavirus outbreak knocked it below the FTSE 100 relegation threshold.
The Hanover-headquartered group’s share price dropped by almost a third over five sessions last week as fears mounted that the virus will force families to scrap travel plans.
A drop would end an eight-year spell in the blue-chip index for TUI, which now has a market cap of just £3.5bn. Final decisions on relegation and promotion to the FTSE 100 will be made on Wednesday.
2020欧洲杯体育足彩外围appTUI was joined by fellow airline-operators easyJet and British Airways-owner IAG in slumping during the week, with the groups’ prices falling by around a quarter on average.
IAG warned the outbreak meant it was “not possible to give accurate profit guidance” for the forthcoming year, while easyJet announced plans to cancel some flights.
The stock market action of last week has disrupted the pecking order on London’s main market, making the reshuffle less predictable than usual.
One certainty for relegation is crisis-struck hospital operator NMC Health, which has seen its share price drop by two thirds since coming under attack from short-seller Muddy Waters in September. The group would have to almost triple its prices in two days to keep its place among the blue-chips – a challenge made even harder as its shares were suspended on Thursday.
“I cannot recall such a clear cut relegation candidate as NMC Health,” said Helal Miah, a Share Centre analyst. Removal from the top index can deal a major blow to firms. As well as conferring prestige status upon its members, the FTSE 100 is closely tracked by many of the world’s biggest funds – which gives constituents helpful market liquidity – and relegation can mean their shares are automatically dumped.
2020欧洲杯体育足彩外围appFor a movement to take place, either a non-FTSE 100 company must pass the market cap of the 90th-placed blue-chip, or a current FTSE 100 constituent must drop below the 111th-ranked company by the deadline. March’s reshuffle will be based on Tuesday’s closing prices. The movements will be confirmed on Wednesday, with changes taking effect at the end of the month.
2020欧洲杯体育足彩外围appGold miner Fresnillo had been the lead candidate for re-entry to the FTSE 100, but the biggest intraday fall in the price of gold since 2013 took a chunk of the Mexico-focused miner’s price on Friday. Instead, NMC’s place is likely to be nabbed by Intermediate Capital, an asset manager with a focus on assets such as private debt.
2020欧洲杯体育足彩外围appBased on Friday’s closing prices, TUI’s spot will likely go to GVC Holdings, the owner of Ladbrokes Coral, although housebuilder Bellway is hot on the bookmaker’s heels.
But with volatility high and major movements abounding, there are a slew of other names that could come up – most notably B&Q owner Kingfisher. Education publisher Pearson and supermarket Sainsbury’s are both hovering narrowly above automatic relegation, with Meggit and Morrison’s also in danger.