FTSE 100 movers: Airlines hit by Lufthansa warning; BAT knocked lower by downgrade
London's FTSE 100 was up 0.1% at 7,351.14 in afternoon trade on Monday as investors erred on the side of caution ahead of a series of central bank announcements this week.
EasyJet and International Consolidated Airlines Group were under the cosh after Lufthansa cut its 2019 outlook as it warned that market-wide overcapacities and "aggressively" growing low-cost competitors are putting pressure on yields in the European short-haul market.
The airline now expects its adjusted earnings before interest and tax margin to reach 5.5% to 6.5% versus a previous forecast of 6.5% to 8%, resulting in group adjusted EBIT of between €2bn and €2.4bn this year, down from €2.4bn to €3bn previously. The outlook factors in a fuel cost increase of €550m despite the recent decline of the oil price.
British Gas owner Centrica was on the back foot after an initiation at 'underperform' by Macquarie.
British American Tobacco was knocked lower after Morgan Stanley downgraded the stock to 'underweight' and cut the price target to 2,600p from 2,750 as it pointed to underappreciated risk from disruption and regulatory change.
FTSE 100 - Risers
Hikma Pharmaceuticals (HIK) 1,683.00p 2.28%
Marks & Spencer Group (MKS) 219.90p 1.81%
Hiscox Limited (DI) (HSX) 1,718.00p 1.78%
SEGRO (SGRO) 731.60p 1.75%
Sage Group (SGE) 772.60p 1.60%
WPP (WPP) 974.40p 1.46%
Rolls-Royce Holdings (RR.) 904.20p 1.39%
Standard Chartered (STAN) 685.80p 1.39%
Rightmove (RMV) 580.60p 1.31%
Micro Focus International (MCRO) 2,000.00p 1.30%
FTSE 100 - Fallers
easyJet (EZJ) 881.20p -5.15%
Smith (DS) (SMDS) 335.00p -4.31%
International Consolidated Airlines Group SA (CDI) (IAG) 448.00p -2.76%
Ocado Group (OCDO) 1,133.50p -2.24%
Centrica (CNA) 89.88p -1.79%
Associated British Foods (ABF) 2,419.00p -1.79%
British American Tobacco (BATS) 2,834.00p -1.78%
Imperial Brands (IMB) 1,947.60p -1.47%
TUI AG Reg Shs (DI) (TUI) 739.60p -1.41%
SSE (SSE) 1,109.00p -1.16%