MARKET REPORT: Airlines shares fall again amid fears over the fallout from the hospital blast in Gaza
It was another bleak day for the airlines as tensions mounted in the Middle East.
Shares in Easyjet, Wizz Air and British Airways owner IAG have fallen sharply in the wake of the attack by terrorist group Hamas on Israel this month.
They fell yet again yesterday amid fears over the fallout from the hospital blast in Gaza.
The sector was also hit by a string of downgrades from City analysts. Investment bank Citi warned that ‘pricing will lose momentum’ in short-haul flights.
Citi downgraded its target price on IAG by 20p and reduced its rating on Wizz to ‘sell’ from ‘neutral’. At the same time, broker Peel Hunt cut Easyjet’s target price by 110p.
All this as the price of Brent crude climbed to as high as $93 a barrel, potentially driving up the cost of fuel.
Descent: Shares in Easyjet, Wizz Air and British Airways owner IAG have fallen sharply in the wake of the attack by terrorist group Hamas on Israel this month
Wizz sank 4.8 per cent, or 820.5p, to 1615.5p while Easyjet dropped 4.1 per cent, or 16p, to 374.6p and IAG slipped 3.1 per cent, or 4.5p, to 141.5p.
The FTSE 100 fell 1.1 per cent, or 87.21 points, to 7588 and the FTSE 250 was down 1.6 per cent, or 286 points, to 17403.46. Whitbread rose to the top of blue-chip index as it cashed in on strong demand for Premier Inn hotel rooms.
Profits jumped 44 per cent to £391million in the six months to the end of August. The British hotel group also hiked its interim dividend by 40 per cent to 34.1p a share and launched a £300million share buyback, as the stock rose 1.3 per cent, or 43p, to 3366p.
AstraZeneca sank into the red following disappointing data from its lung cancer drug trial. Shares fell 5.8 per cent, or 658p, to 10,612p.
Antofagasta maintained its copper production forecasts of 640,000 to 670,000 tonnes for this year following a strong third quarter.
The mining giant also expects to produce as much as 710,000 tonnes in 2024. But this is less than the 714,000 tonnes pencilled in by analysts. Shares dipped 2.9 per cent, or 40.5p, to 1354p.
Stock Watch - Gama Aviation
Gama Aviation flew higher after the air services company agreed to sell one of its businesses for £108million.
The group bought Jet East, a US aircraft maintenance provider, for £9.8million in 2021.
That is on the verge of being sold to West Star Aviation, owned by the US private equity firm The Sterling Group.
Shareholders will vote on whether to approve the deal on November 3. It estimated that the net proceeds will be around £82million. Shares surged 68.6 per cent, or 36p, to 88.5p.
Hochschild Mining rose 2.2 per cent, or 1.85p, to 86.75p after the gold and silver explorer remained on track to meet its production targets this year and said it was on the verge of completing a project in Brazil on time and on budget.
Investor fears over further downgrades at Marshalls were eased after the landscaping group insisted financial targets will be met this year despite a tough third quarter, where revenue fell 9pc in the three months to the end of September. It gained 3.7 per cent, or 7.4p, to 205.4p.
Warehouse developer Segro reported strong demand for its giant sheds and industrial properties.
It has projects that could bring in an extra £84million under construction or due to start shortly.
But it added that investment activity remains ‘subdued’, particularly in the UK. Shares fell 2.3 per cent, or 17p, to 718p.
Online travel agent Hostelworld raked in record revenues in the first nine months of this year amid strong demand.
Revenue surged 38 per cent to £65.21million while the number of bookings soared 43 per cent to 5million.
Its annual profit is now expected to be between £15million and £15.6million. It rose 1.3 per cent, or 1.5p, to 119.5p.
Bodycote, the heat treatment firm, hired Jim Fairbairn as its boss. The 54-year-old, who has led the test and measurement specialist Megger Group since 2017, will take over in next May. Shares slid 3.8 per cent, or 22p, to 578.5p.
Fund manager Jupiter clawed back some losses a day after it hit a record low as clients pulled out £1billion of funds in the three months to the end of September. Shares rose 0.8 per cent, or 0.65p, to 78.1p.
Data software company Cirata – formerly known as Wandisco – fell 11 per cent, or 6.4p, to 52p after a slight dip in bookings in the quarter to September 30. It has aimed to move on from an accounting scandal earlier this year.
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