Ryanair profits drop affects FTSE sentiment
FTSE airline shares were sharply lower today after Dublin-based carrier Ryanair warned it could make a loss in the current financial year.
The worse-than-expected update from Ryanair, including an 85% drop in first quarter profits, caused rival easyJet to fall 7% or 23.5p to 312p in the FTSE 250 Index while top flight airline British Airways dipped 5% or 12p to 234.75p.
The wider London market was also under cloud, with the FTSE 100 Index down 18.3 points at 5334.3 by mid-morning.
Halifax Bank of Scotland joined BA at the top of the fallers board, reflecting nervousness ahead of results later this week. Speculation over the weekend suggested HBOS could lose top spot in the mortgage market, while half-year profits are seen more than 50% lower at around £1.3bn (€1.6bn).
Analysts said the figures on Thursday were likely to uncover more big write-downs and slowing revenue growth. And CMC Markets said Friday’s talk regarding break-up interest from JP Morgan had failed to gather momentum.
Royal Bank of Scotland was also lower, down 4% or 8.75p to 206.25p, amid speculation it might call off the sale of its insurance division.
Fashion chain Next, which is due to publish a trading update this week, fell 3% or 33p to 1001p.
Marks & Spencer dipped 10.25p to 249.5p after ING initiated its coverage of the stock with a sell rating and a 200p target price.
Miners ensured the Footsie remained close to its opening mark, with Antofagasta up 26p at 530p and Kazakhmys 54p higher at 1357p.
The biggest rise in the FTSE 250 Index came from technology firm Detica, which jumped 18% or 66.25p to 438.5p after BAE Systems announced a 440p a share takeover deal for the firm, which specialises in intelligence-based products for national security.
