It was all happening over at the FTSE 100, with the benchmark shuffling its decks. Investors decided to switch their portfolios rapidly amid the ongoing cost-of-living crisis and the ongoing war in Ukraine. As a result, broadcaster ITV, delivery group Royal Mail and North Sea oil driller Harbour Energy Plc are likely to drop out of the UK index, Hargreaves Lansdown analyst Susannah Streeter predicted ahead of an announcement from FTSE Russell, a unit of the London Stock Exchange Plc, on Wednesday.
Energy firms are likely to be hit by the 25% windfall tax — announced by Chancellor of the Exchequer Rishi Sunak last week. The UK government were under immense scrutiny to help with household energy costs. Small companies such as Harbour will be hit even harder than major firms like Shell Plc and BP Plc, which have greater geographical diversification, according to Bank of America Corp. analyst Christopher Kuplent. Centrica, the owner of British Gas, sees its promotion come as soaring energy prices spur calls for the group to resume shareholder payouts.