Key Takeaways
- A takeover bid and higher oil prices are behind the stock moves pushing easyJet and Ithaca Energy into the FTSE 100.
- Housebuilder Persimmon and gambling group Entain are likely to be demoted into the FTSE 250
- Quarterly changes to the index will take place in September.
Having navigated the Iran war and hit multiple record highs in 2026, the next quarterly FTSE 100 reshuffle will set the scene for how the UK’s largest stock index ends the year. Two new stocks are likely to join the index: a budget airline and an oil and gas exploration company.
The latest indicative changes to the UK index were confirmed by index owner FTSE Russell on Aug. 26, with the final changes dependent on rankings at the market close on Sept. 1. The changes will be confirmed after the market close on Sept. 2.
Which Companies Are Leaving And Joining the FTSE 100?
This time around, airline easyJet EZJ is set to join the FTSE 100–just weeks after it confirmed it would be taken private by US private equity firm Apollo Global Management. This promotion will be short-lived, because when the airline is taken private, a new FTSE 100 stock will be promoted.
EasyJet will most likely be joined by North Sea oil and gas operator Ithaca Energy ITH, whose stock has risen 63% since January, boosted by higher oil prices and hopes of drilling in that area.
On course to exit the FTSE 100 are Ladbrokes owner Entain ENT and housebuilder Persimmon PSN, whose exposure to a cyclical downturn in the housing market has not only robbed it of its FTSE 100 status, but its ranking as a top housebuilding stock pick by Morningstar analysts. Entain, which faces high UK gambling taxes and slower-than-expected US growth, faces possible additional pressure at the Autumn Budget in October, where new chancellor John Healey may target gambling companies to shore up the UK government’s finances.
Each will most likely be joined in the FTSE 250 by automotive technology firm Pinewood Technologies Group PINE and Volex VLX, both of which are set to be promoted into the index. Luxury carmaker Aston Martin Lagonda AML is set to leave the FTSE 250 and enter the FTSE SmallCap index. Year to date, its stock has fallen 45.46%.
Why the FTSE 100 Reshuffle Matters
These index changes offer an insight into which sectors are in and out of favor, and which companies are on the up or struggling in the big league. It’s purely down to changes in market value.
Index provider FTSE Russell changes the constituents of its indexes every quarter to reflect the valuations of Britain’s biggest companies. Which companies move in and out of the FTSE 100 is based on their total market capitalization at the end of the specified trading day.
To avoid the same borderline companies dropping out and back in every reshuffle, a company must be in the top 90 by market cap to be promoted. Likewise, to be demoted, the firm has to be below the 110th biggest company by size.
Funds tracking the FTSE 100, 250 and All Share indexes have to adjust to changes whenever they’re made, boosting flows into stocks that join popular benchmarks. As more investor money shifts to passively managed index funds, these changes become more significant over time.
