London midday: FTSE turns red as travel, hospitality shares slide
London stocks had moved into the red by midday on Thursday, with travel and hospitality shares under the cosh following the introduction of fresh Covid restrictions.
The FTSE 100 was down 0.2% at 7,326.03, while sterling was 0.2% lower versus the dollar at 1.3180 after the government announced on Wednesday that it was implementing 'plan B'.
IG market analyst Chris Beauchamp said: "Stocks continue to digest their huge gains from earlier in the week, as the rally moves into more of a mature phase following the initial enthusiasm of Monday and Tuesday. With little in the way of major news to drive price movement stocks have been reliant on the few earnings reports coming out, but also on watching Omicron-related developments.
"The UK’s move to new restrictions points towards the expected playbook for the weeks to come, and could well put some pressure on equity markets in what is normally a fairly positive time. For major indices in Europe and the US the knowledge that three vaccine doses can successfully combat the variant should help investors to retain an optimistic view of the situation, but the imperative is to ensure more vaccines reach the rest of the world, to avoid a cycle of new variants appearing regularly.
"Unsurprisingly airline and aviation stocks are struggling in London, on expectations that there will be further restrictions announced around the globe."
In equity markets, engine maker Rolls-Royce, BA and Iberia owner IAG, caterer Compass, Premier Inn owner Whitbread, Restaurant Group, Cineworld, Wizz Air and easyJet were all down amid worries about the impact of new Covid curbs rules.
Rolls-Royce was also in focus after it said annual free cash flow would be better than expected after trading improved, but sales at its civil aerospace were lower than forecast.
Investec, Redde Northgate and Assura were all weaker as they traded without entitlement to the dividend.
North Sea oil producer Harbour Energy - formerly Premier Oil - gushed lower after it announced a $200m annual dividend policy, as it prepared to host its first capital markets day since its merger.
Dr Martens was on the back foot, reversing earlier gains despite posting a 46% rise in interim profits, driven by a recovery in physical stores sales as they reopened from Covid curbs.
Bus and rail operator FirstGroup fell after it warned of uncertainty around the pace of recovery amid fresh developments in the pandemic.
On the upside, Moonpig rallied after the online greeting card retailer upped its full-year revenue guidance, despite interim sales coming up against tough lockdown comparatives.
Market Movers
FTSE 100 (UKX) 7,326.03 -0.15%
FTSE 250 (MCX) 23,173.22 -0.24%
techMARK (TASX) 4,471.57 0.06%
FTSE 100 - Risers
Darktrace (DARK) 423.20p 3.27%
BT Group (BT.A) 176.30p 2.59%
Intertek Group (ITRK) 5,724.00p 1.38%
Spirax-Sarco Engineering (SPX) 16,235.00p 1.37%
United Utilities Group (UU.) 1,128.00p 1.30%
Polymetal International (POLY) 1,334.00p 1.21%
Sage Group (SGE) 818.80p 1.16%
Experian (EXPN) 3,647.00p 1.11%
B&M European Value Retail S.A. (DI) (BME) 636.60p 1.08%
National Grid (NG.) 1,048.80p 1.04%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 124.00p -3.61%
International Consolidated Airlines Group SA (CDI) (IAG) 138.62p -2.90%
Johnson Matthey (JMAT) 2,043.00p -2.30%
Ashtead Group (AHT) 6,320.00p -1.62%
Compass Group (CPG) 1,539.00p -1.60%
Intermediate Capital Group (ICP) 2,213.00p -1.51%
Melrose Industries (MRO) 150.45p -1.47%
Entain (ENT) 1,696.00p -1.40%
Ocado Group (OCDO) 1,611.00p -1.38%
Flutter Entertainment (CDI) (FLTR) 11,095.00p -1.33%
FTSE 250 - Risers
Moonpig Group (MOON) 378.20p 5.64%
Volution Group (FAN) 541.00p 5.25%
Balfour Beatty (BBY) 253.60p 2.59%
Baltic Classifieds Group (BCG) 207.00p 2.48%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 505.00p 2.33%
Frasers Group (FRAS) 720.50p 1.91%
Future (FUTR) 3,556.00p 1.83%
Hammerson (HMSO) 33.79p 1.81%
Petropavlovsk (POG) 21.30p 1.72%
Playtech (PTEC) 738.00p 1.51%
FTSE 250 - Fallers
Restaurant Group (RTN) 84.30p -7.26%
Harbour Energy (HBR) 401.80p -6.69%
Dr. Martens (DOCS) 377.60p -5.84%
FirstGroup (FGP) 96.25p -5.36%
AO World (AO.) 95.45p -3.68%
Ferrexpo (FXPO) 295.60p -3.34%
easyJet (EZJ) 532.80p -3.16%
Virgin Money UK (VMUK) 167.40p -3.04%
Bridgepoint Group (Reg S) (BPT) 470.50p -2.99%
Wizz Air Holdings (WIZZ) 4,342.00p -2.91%