Business & Investment

Market Report: Hitting Airline Stocks As Covid’s Curb Tightens

Airlines and travel stocks plummeted as the British minister considered strict border restrictions to include a new variant of Covid-19.

Measures being considered to prevent the spread of strains from Brazil and South Africa include quarantining some or all of international arrivals at the hotel for up to two weeks.

It will further reduce travel to the UK and give another physical blow to tourism, which is already fighting for their survival.

Flight Risk: Plans to introduce stricter border controls to include new variants of Covid 19 have hit airlines and travel stock shares

Yesterday, Prime Minister Rishi Sunak, a former advocate of opposition to stricter measures, was alleged to have supported the idea of ​​quarantine, and other European governments were said to be considering a similar move.

British Airways owner IAG shares fell 7.7% (11.6p) to 140p, clearing the company’s value by about £ 580m.

Low-cost carrier easyJet plunged 6.7% (52p) to 728.6p and rival Ryanair fell 4.1% (0.61 euros) to 14.26 euros. Wizz Air dropped 4.4p, or 186p to 4092p.

Rolls-Royce, an engine maker that relies on the aviation industry for business, also fell 4.8% (4.95p) to 98p.

Stock Watch-Angus Energy

Angus Energy shares rose as the company stepped closer to resuming production in dormant areas.

We would like to resume operations in the Saltfleetby onshore gas field off Lincolnshire, which was closed under its former owner in 2017.

Angus will acquire a 51% stake in this area in 2019 and is about to reconnect to the National Grid.

According to research, Salt Fleetby still has an estimated £ 50 million worth of reserves. The stock price rose 4.2% (0.05p) to 1.25p.

Most airlines have already watered their schedules after the start of the latest national blockade, but experts say more restrictions and uncertainties about when to end will hurt bookings after the summer. I am concerned that there is a possibility.

Glyn Johns, the boss of South End Airport, told the Financial Times: “When people are uncertain, they don’t tend to make purchasing decisions.”

Another pessimistic report that the blockade could be extended beyond Easter has also hit retailers and other businesses that rely on busy public spaces for their visitors.

WH Smith usually receives big deals from outlets at train stations, airports, ports and highway service stations, dropping from 7.7% (132p) to 1593p, but the owner of Upper Crust, SSP Group. Was down 8% (26.8). up to p, 307.4p.

Baby products retailer Mothercare closed at 4.8% at 11p, or 0.55p, after a pandemic revealed that sales had plummeted 38% in the nine months to January 2. ..

Neil Wilson, Chief Analyst at Markets.com, said: “The pandemic continues to be confidently eaten up. It is said that the government is now considering extending the blockade for another three months beyond Easter.

“This is a second vaccination for everyone over the age of 50, but everyone, especially travel stocks, is beginning to appear to be affected by Covid’s limits during the peak summer season. It just spreads the pain. “

The disastrous news has set the FTSE 100 back, with the Best Stock Index down 0.8% (56.22 points) to 6638.85. The FTSE 250 also fell 1.2% (246.5 points) to 2035.41.

However, pharmaceutical company AstraZeneca has risen 1.5% (120p) to 7897p after announcing that the cancer drug Calkens has been approved for use in more patients in Japan.

The results of further testing of this drug have also yielded positive results, paving the way for further regulatory submissions.

Elsewhere, specialist recruiter SThree reported higher-than-expected profits and promised to regain dividends, rising 3.5% (11.5p) to 339.5p.

The company, which helps find staff in the IT, financial, life sciences, engineering and energy businesses, said adjusted profits for the year to November 30 were halved to £ 30.1m. This is better than analysts predicted £ 28.2m. This was followed by a recovery in the US sector and an increase in Covid-related jobs, especially by pharmaceutical companies.

SThree also said it will pay a dividend of 5 pence per share after a hiatus to save cash last year.

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Market Report: Hitting Airline Stocks As Covid’s Curb Tightens

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