BA warning initiates fall for FTSE
British Airways weighed on the London market today as the group gave a cautious outlook forecast, despite posting an improvement in profits.
Shares slid 3.25p to 113p, a 3% fall, as the group said it did not forecast a rise in revenues for the next year while the business environment this year would be “tougher” than last.
The fall came despite the group recording a profits rise ahead of expectations for the last quarter year.
The wider market also had a subdued start to the day, as a tumble on Wall Street on Friday hurt the mood in the City. After an hour of trading the FTSE 100 Index was down 2 points at 3597.2
Among the fallers were the banks, as investors geared up for the sector’s key reporting season.
Lloyds TSB, which will report on Friday, fell 2.25p to 406.5p, while Bradford & Bingley was off 4.75p at 256.75p and Abbey National was down 7p at 417p.
Insurers also remained under pressure, with Legal & General down 0.5p at 73.5p, Aviva off 3.25p at 421p and Prudential down 1.75p at 398.25p.
Among the second tier stocks, water firm AWG surged more than 20% in trading as investors reacted to news that the group rebuffed a 510p, or £902 million takeover offer.
Shares surged 91.5p to 520p in early morning trading today following news of the approach. At its current price the group is valued at £919m (€1,363m).
