Covid-19 shakes up FTSE 100

Avast logoThe first quarterly reshuffle of the FTSE 100 since the Covid-19 pandemic swept across the world has taken its predictable toll on travel and tourism stocks and given an equally foreseeable boost to the tech and DIY sectors. The travel cruise giant Carnival has been ejected from the rankings (despite Saudi Arabia’s sovereign wealth fund’s recent investment)along with budget airline easyJet, while the anti-virus software provider firm Avast and the online gambling platform GVC have both earned promotion into the top flight for the first time.
Avast had been one of the front runners to break into the FTSE 100 for some time as the need for anti-virus software has been growing hand in hand with the boom in home working and home learning, both inevitable consequences of lockdown; and although GVC holding’s parent company Ladbrokes has been hit hard by the worldwide suspension of sporting events, online casinos and poker games have been helping to fill the void they have left.
The DIY sector is proving to be another beneficiary of the pandemic, with both Homeserve and B&Q’s owner Kingfisher earning a place at UK PLC’s top table. With more people using (and breaking) washing machine and other white goods during lockdown , Homeserve’s engineers have been unusually busy, while enforced domestic confinement has given DIY enthusiasts the opportunity to indulge their hobbies and forced less practical householders to tackle that list of odd jobs now that lack of time is no longer a valid excuse.

INOUT
Avast (AVST)Online SecurityCarnival (CCH) Cruise ships
GVC Holdings (GVC)Online GamblingCentrica (CNA)Energy & Services
Homeserve (HSV)Home ImprovementsEasyjet (EZJ)Budget airlines
Kingfisher (KGF)Retail & DIYMeggitt (MGGT)Aerospace

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