Key facts
- Entain and Aston Martin are among companies facing removal from London stock market indices.
- Entain is expected to be demoted from the FTSE 100 due to increased UK gambling taxes and competition.
- Persimmon is also slated for potential relegation from the FTSE 100.
- Aston Martin is tipped to drop from the FTSE 250 after a period of financial difficulty.
- Ithaca Energy and EasyJet are expected to be promoted into the FTSE 100.
- The changes will be effective after the September 1 trading session.
Entain, the owner of Ladbrokes, and luxury car manufacturer Aston Martin are reportedly on the verge of being removed from London's stock market indices in an upcoming quarterly reshuffle. Entain is expected to be demoted from the FTSE 100 following a challenging period marked by increased taxes on bookmakers, heightened competition, and slower-than-anticipated growth in the US market. A new 25% betting levy, set to be implemented from April 2027, and a hike in the remote gaming duty to 40% from April 2026, are expected to significantly impact Entain's earnings.
Housebuilder Persimmon is also anticipated to be relegated from the FTSE 100, reflecting a depressed property market. Analysts suggest this is a sign of the times, with the firm having previously flagged concerns over inflationary pressures affecting its supply chain.
Set to replace Entain and Persimmon in the FTSE 100 are oil and gas firm Ithaca Energy, which has benefited from elevated energy prices amid the US-Iran conflict, and EasyJet. The low-cost airline's shares have surged in anticipation of its £5.7 billion takeover by asset manager Apollo.
On the FTSE 250, Aston Martin is tipped for a drop from the mid-cap index. The luxury car maker has faced significant financial headwinds, including a 52% increase in net losses to nearly £500 million, leading to a decision to cut 20% of its workforce. The company has cited disruptive US tariffs and subdued demand in China as contributing factors to its struggles. Investors remain concerned about the firm's financial health.