2 FTSE 100 shares I plan to keep away from just like the plague in 2025

Securing a spot on the FTSE 100 is not any straightforward feat, usually achieved by way of years of constant development and strong efficiency. Round 80% of constituents are well-established firms with long-term development potential.

So there aren’t a number of shares on there I’d keep away from? 

Even one of the best firms slip into dangerous territory, whether or not it’s from managerial failings or exterior components. In some cases, geopolitical points disrupt provide chains or a competitor swoops in and steals market share.

BP‘s suffered recently from oil price fluctuations and costly efforts to meet sustainability goals. Reckitt Benckiser took heavy losses this year after a lawsuit resulted in a costly fine. Both holdings of mine, I trust these short-term issues will be resolved and they’ll get well.

Nonetheless, there are two Footsie shares for which I see little hope on the horizon. I’d fortunately be confirmed mistaken however I don’t plan to put money into these shares any time quickly. 

Right here’s why.

A dwindling business

Paper and packing big Mondi‘s (LSE: MNDI) been in decline for a number of years now, falling 35% prior to now 5 years. 

2023 was a very robust 12 months for the European packaging business. It suffered a slowdown after Covid, with a 12% drop in paper and board manufacturing.

In March, a quick 20% worth acquire got here after plans to merge with competitor DS Smith. However in April it pulled out of the deal and the worth fell once more. Struggling to revenue in a dwindling business, I see little hope for restoration.

Now at £12.14, it’s nearing its lowest stage in 10 years. It’s additionally being shorted by eight fund managers, together with Marshall Wace and Millennium Worldwide.

It may very well be working in the direction of an answer although. In partnership with Coca-Cola, it goals to offer paper options to plastic packaging. This might assist it create recent demand for its merchandise. 

Even when the worth struggles to get well, it does provide some worth in dividends. The yield at the moment sits at 4.9% and funds have remained pretty steady since Covid.

I’m not writing it off fully, but it surely’s actually not on my record for 2025. 

No room for enchancment?

The father or mother of house enchancment retailer B&Q, Kingfisher (LSE: KGF), was initially doing nicely this 12 months. However issues took a flip in September. After leaping 20% on a constructive earnings name, the inventory started declining earlier than crashing 15% final month.

Gross sales have tapered off this 12 months, probably because of inflation and a slowdown within the housing market. The group’s Castorama and Brico Dépôt shops in France suffered notably underwhelming outcomes. Rising wages and vitality prices mixed with provide chain points have additionally strangled income.

There are at the moment 9 quick positions open on the inventory, making it one of the shorted firms on the FTSE 100.

There’s some mild on the horizon although. With earnings forecast to develop 10% a 12 months, the present worth appears to be like low-cost. With a ahead price-to-earnings (P/E) ratio of 11.6, it appears to be like undervalued in comparison with opponents. So if issues do flip round, buyers may revenue. 

Like Mondi, it additionally has a 4.9% yield which is predicted to stay steady.

Nonetheless, whereas the property market stays shaky, Kingfisher’s too dangerous for me. If issues enhance subsequent 12 months, I’ll rethink the inventory for 2026 or past.