Easyjet’s shares nosedive after it warns that ticket sales have been hit by Brexit uncertainty. easyJet (EZJ) shares nosedived after it warned that ticket sales have been hit by Brexit uncertainty. The budget airline said ‘many unanswered questions’ surrounding the UK’s exit from the European Union meant customers have put summer holiday plans on hold. Shares tumbled 9.7%, or 108.5p, to 1009p. The warning sparked nerves across the sector as shares in rival airlines and travel firms took a beating. Low-cost carrier Wizz Air Holdings (WIZZ) fell 4.3%, or 130p, to 2880p, package holiday firm Thomas Cook Group (TCG) slid 5.5%, or 1.36p, to 23.58p, online company On The Beach Group (OTB) was down 4.9%, or 21.3p, at 417.2p, while TUI AG Reg Shs (DI) (TUI) fell 3.1%, or 22.4p, at 713.2p. Russ Mould, investment director at AJ Bell, said: ‘EasyJet’s warning about softer ticket prices has sent shock waves across the airline industry, adding to problems already voiced by tour operators and suggesting that 2019 could be a washout for the travel sector. ‘If you’re going to hand over a large sum of money for a trip abroad, you want to be reassured that the flight will actually happen and will take off as scheduled. ‘At the moment, travellers don’t seem to have that reassurance.’
Low & Bonar’s stock plunges nearly 20% after it warns profits for year will be lower than anticipated. Low & Bonar (LWB) stock plunged nearly 20% after it warned profits for the year will be lower than anticipated. The business, whose high-performance fabrics have been used to build inflatable boats taking part in the gruelling 500-mile Trans Agulhas race in South Africa, said revenues fell in the first quarter of the year. Analysts had been expecting profits of £19.8m this year, following a loss of £42.2m last year.
Deutsche Bank analysts suggest all WPP (WPP) has to do is hit its own modest targets for a boost after struggling since Sir Martin Sorrell’s departure. Deutsche Bank analysts suggest there is a silver lining of sorts in that the mood is so bleak that the stock has been oversold. They said all WPP has to do is hit its own modest targets for a boost. The analysts are hopeful that marketing cutbacks have hit rock bottom and there could be an improvement. They said: ‘We think that expectations for WPP are so low that even delivery of current guidance will be enough for the shares to enjoy a re-rating.’ Deutsche slapped a ‘buy’ rating on the stock and reckons shares should hit 1010p.
Grainger (GRI) climbed 0.8p, to 237.4p after it was picked by Transport for London to build 3,000 houses across eight sites near tube stations in the capital. Grainger will own a 51% stake in the joint venture, with the rest held by TFL. Work has started on getting planning permission for the project.
has won support from major investor Schroders in a battle against shopping tycoon Mike Ashley. Ashley’s firm Sports Direct has made a hostile takeover bid for Findel as part of an acquisition spree. The Newcastle United owner has offered 161p per share, valuing Findel at £139.2m. But Schroders – which owns an 18.9% stake in the internet seller – has said it supports the current management.
Drugmaker AstraZeneca (AZN) climbed 34p, to 6169p after US regulators gave approval to continue developing a medicine for treating children over three who suffer neurofibromatosis, a genetic condition which causes tumours to develop on their nerve tissue.
