Index’s top tier is down by 16.3 points

Holiday companies lead the Footsie’s fallers

Published:

Concerns over the outlook for tour operators Thomas Cook and Thomson owner TUI Travel saw the stocks top the fallers board on the FTSE 100 Index yesterday.

A downgrade from Morgan Stanley dealt a blow to the travel groups as the broker raised fears over weak demand, cost pressures and rising debts at the pair.

It was a more subdued session for the wider FTSE 100 Index after Thursday’s fall of more than 1%, with the top tier closing 16.3 points down at 5,251.4.

On the Footsie, broker comment provided much of the momentum in an otherwise quiet day for company news.

Morgan Stanley’s note left Thomas Cook and TUI Travel nursing declines of 4%, down 9.3p at 209.2p and 10.2p at 245p respectively.

A gloomy assessment of prospects from the UK’s biggest building society, Nationwide, did little to help bank shares. Nationwide predicted record low interest rates until at least the final quarter of next year and downward pressure on house prices.

Among the listed banks, Lloyds Banking Group was off 1.79p at 88.15p and Royal Bank of Scotland was down 0.01p at 35.99p. In the second tier, embattled transport firm National Express rose 8%, or 25.9p to 366.9p, after its largest shareholder – Spain’s Cosmen family – upped its stake to just under 20% by buying another 500,000 shares.

David Barclay, a divisional director at broker and wealth manager Brewin Dolphin in Aberdeen, noted that among Scottish stocks Goals Soccer Centres was up 2.1% to 217p. Meanwhile, sausage skin maker Devro rose 0.6% to 129.25p with Irn Bru manufacturer AG Barr gaining 2p to 871.5p. On the faller’s board, Dana Petroleum dropped 1.6% to £12.79 while Aberdeen Asset Management also went down, falling 1.2% to 139p. Aggreko, the temporary power supplier, fell 1% to 753p.