FTSE 100: Entain, Persimmon, and Aston Martin face potential relegation

Several major companies face potential relegation from the FTSE 100 ahead of the London market’s quarterly index reshuffle. Entain, Persimmon, and Aston Martin are among those tipped to lose their positions in the index.

Entain, the owner of Ladbrokes, is facing significant financial pressure due to rising UK gambling taxes. The company anticipates that a remote gaming duty increase to 40 per cent in 2026, combined with a new 25 per cent betting levy in 2027, could reduce annual earnings by up to £150 million.

Persimmon is expected to drop from the index due to a depressed property market and inflationary supply chain pressures. Meanwhile, Aston Martin faces challenges following a difficult period for the luxury car maker. Potential replacements for the index include the oil and gas firm Ithaca and EasyJet.

In other market news, spirits giant Diageo has seen its shares decline by 49 per cent over the last three years. The company has struggled with falling sales in Latin America and the US, leadership changes, and shifting consumer trends among younger generations, despite recent improvements in organic operating profit and free cash flow.