FTSE reshuffle sees new floats dominate the index

TOUR operator Thomas Cook is set to lose its place in the FTSE 100 Index following the latest reshuffle of blue-chip stocks.

The firm’s shares have fallen by a third in the past three months as the travel industry copes with the recession and Iceland’s volcanic ash cloud.

The result of the reshuffle will be confirmed today – although based on Tuesday’s closing share prices, the London Stock Exchange is also set to join it in the FTSE 250.

The duo are likely to be replaced in the blue-chip ranks by yet more overseas companies. Indian power group Essar raised £1.2bn in the biggest flotation in London for two years in May, while it will be joined by Tanzania-focused gold producer African Barrick Gold in making a FTSE 100 debut.

Elsewhere, current small cap sportswear retailer JD Sports is set to join the FTSE 250 Index, as well as fellow fashion chain SuperGroup.