Tui Travel is to drop out of the list of the UK’s top 100 companies in the quarterly FTSE index shake up.
The demotion follows a 6% fall in the company’s share price, which has left Tui’s worth below that of the UK’s most valuable 100 quoted companies.
Food giant Tate and Lyle will replace it on the list in changes which come into effect from the start of trading on June 20.
Inclusion in the 100 index typically boosts a company’s share price as many investment funds track the index.
But Tui shares have fallen over the past quarter as a number of factors made travel businesses profits less certain, including the impact of unrest in key holiday destinations such as Egypt and Tunisia, high fuel costs and disruption from further volcanic activity in Iceland.
Tate and Lyle shares have gained almost 18% since the previous quarterly review in March.
The index is one of a number created and managed by FTSE Group, an independent company which is owned jointly by the London Stock Exchange and the Financial Times.
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