Airlines and travel agencies have taken another blow in the stock market as fallout from the UK government’s decision to remove Portugal from its green list of countries hit investors.
No other country has been added to the green list for travelers and the industry has reacted furiously to the measures. Investors weren’t impressed either, wiping millions of dollars off the companies.
The market caps of EasyJet, Ryanair Wizz Air IAG and engine manufacturer Rolls-Royce all fell by a combined total of almost £ 800million – after falling by £ 2 billion on Thursday.
Ryanair shares fell 1.3%, losing 0.22 cent to 16.16 euros; IAG lost 0.9%, closing at 1.84p to 196.3p; EasyJet closed 25.2 pence, or 2.6%, at 934 pence; Wizz Air lost 153p, or 3.3%, to 4,533p and Rolls-Royce lost 2.36p, or 2.15%, to 107.32p.
But Michael Hewson, chief market analyst at CMC Markets UK, pointed out that there had been some benefits for other companies.
He said: “While airline stocks are still under pressure from yesterday’s traffic light system changes, companies like Ocado and Just Eat are among the top performers based on expectations of easing. slower restrictions. “
Ocado shares closed up 55.5 pence to 1,884 pence and Just Eat Takeaway rose 126 pence to 6,411 pence.
The internationally-focused FTSE 100 also failed to pull off much of the latest US non-farm payroll figures, which ended in a wet firecracker, helping the market close the day. up just 4.69 points – or 0.07% – to 7,069.04.
The German Dax ended up 0.39% and the French Cac 0.12%.
Currency markets were also not thrilled, with the pound remaining stable against the euro and the dollar at 1.164 and 1.417 respectively as markets closed.
In business news, the main changes have come in the form of leadership changes.
AstraZeneca has brought in the chief financial officer of its new $ 39 billion (£ 28 billion) subsidiary to take over as chief financial officer.
Aradhana Sarin of Alexion Pharmaceuticals will assume this role later this year, once the agreement between the two companies is concluded. Stocks closed 107p higher at 8,055p.
And mining group Rio Tinto has asked a former Australian minister for aboriginal affairs to join its board of directors after facing a publicity storm in the country over the destruction of an ancient site.
Ben Wyatt will join the company as a non-executive director on September 1, Rio Tinto said. Shares closed up 47p at 6,219p.
In AIM’s junior market, oil company Lekoil revealed a bizarre discussion between the board, who wants the CEO to go missing, and the boss who says he’s sticking around. Stocks plunged 6.15% to 1.525p.
And London-listed virtual reality tech company VR Education saw its shares rise 9.1%, up 1.5p to 18p, as bosses said its software platform Engage has been strongly adopted by multinational companies.
The biggest hikes in the FTSE 100 were Ocado, up 55.5p to 1,884p; Renishaw, up 140p to 5,580p; Entain, up 34.5p to 1733p; Halma, up from 52p to 2640p; and Just Eat Takeaway, up 126p to 6.411p.
Rolls-Royce was the biggest drop in the index, down 2.36 pence to 107.32 pence; ABF, down from 47p to 2299p; Pershing Square, down from 50p to 2560p; Bunzl, down from 39p to 2272p; and Standard Chartered, down 8.5p to 495.9p.