Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

FTSE Slips Back Below 7000

Published 20/11/2018, 13:35
Updated 18/08/2020, 10:10

There’s been some more selling seen in European stock markets this morning with the FTSE falling back below the key psychological level of 7000 to trade at its lowest level of the month.

As investors start to look towards year-end it will take a strong Santa Rally to recover from what has been a poor 2018 overall for the UK stock market, with the FTSE benchmark lower by almost 10% year-to-date. Despite declines of around half a percent for the blue-chip index on the day there are a few bright spots with 8 stocks gaining by 1% or more.

The standout performer is Halma (LON:HLMA), with the health and safety kit supplier rallying more than 4% after reporting a rise of over 20% in pre-tax profits, 16% increase in revenues and a 7% boost to its dividend.

EasyJet drops despite posting higher profits

At the other end of the index is easyJet (LON:EZJ) with the budget airline’s stock dropping over 4% after investors have seemingly taken a dim view of the latest trading update.

The firm announced a jump of over 40% in pre-tax profit to £578m for the past year on a 17% rise in revenues to £5.9B. There was also an increase in the dividend to 58.6p - a rise of 43% - in an earnings release that contained several positives. Despite the good news the adverse market reaction suggests that investors remain skeptical as to whether it is enough to halt the recent declines which have seen roughly a third of the market value erased in the last 2 months alone.

The two chief causes for concern in the release were an increase in average cost per seat from £53.78 to £57.26 as well as a sizable rise in net debt which nearly doubled in growing to £738M. Throw in the ongoing uncertainty surrounding Brexit and where that leaves the airline industry moving forward from the end of March next year and it is not too surprising that despite several positives, investors are choosing to focus on the negatives in this release.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.