FTSE 100 movers: Burberry drops after update but travel stocks rally

by | Jul 16, 2021

London’s FTSE 100 was down 0.3% at 6,991.85 in afternoon trade on Friday.

Luxury goods maker Burberry fell even after it reported a sharp rise in first-quarter sales and maintained full-year guidance as younger customers were attracted to the brand.

Rio Tinto was weaker after it posted a 12% fall in quarterly iron ore shipments as storms and labour shortages hit its Pilbara operations in Western Australia. Other miners followed suit, with Anglo American and Glencore also down.

AstraZeneca was in the red after the US Food and Drug Administration voted against the use of its roxadustat drug for the treatment of anaemia in chronic kidney disease in non-dialysis dependent and dialysis-dependent adults.

Travel and leisure stocks were among the best performers, however, recovering from heavy losses earlier in the week.

InterContinental, Premier Inn owner Whitbread, engine maker Rolls-Royce and British Airways and Iberia owner IAG were all up. The sector was also underpinned by news that US President Joe Biden may lift travel restrictions with Europe.

IG market analyst Joshua Mahony said: “Airlines and high-street names are enjoying some welcome respite after a period which has seen those sectors weighed down by fears around a surge in Covid cases.

“With UK Covid cases up to a six-month high yesterday, the government’s plans to reopen in the hope that hospitalisations fall short of max NHS capacity provide a major risk of further future restrictions.”

Whitbread was given the extra boost of an upgrade to ‘buy’ from ‘add’ at Peel Hunt, which said the shares have been oversold on reopening fears.

Sales, marketing and support services group DCC rose after saying it traded “very well” in the first quarter, with operating profit growth well ahead of the prior year and modestly ahead of expectations.

FTSE 100 – Risers

InterContinental Hotels Group (IHG) 4,791.00p 3.57%
Whitbread (WTB) 2,955.00p 2.82%
Rolls-Royce Holdings (RR.) 93.57p 2.67%
DCC (CDI) (DCC) 6,036.00p 2.48%
British American Tobacco (BATS) 2,861.00p 2.43%
International Consolidated Airlines Group SA (CDI) (IAG) 168.82p 2.09%
Compass Group (CPG) 1,469.00p 1.80%
Flutter Entertainment (CDI) (FLTR) 12,255.00p 1.62%
Imperial Brands (IMB) 1,606.50p 1.61%
Associated British Foods (ABF) 2,056.00p 1.58%

FTSE 100 – Fallers

Burberry Group (BRBY) 1,977.50p -4.47%
Just Eat Takeaway.Com N.V. (CDI) (JET) 5,691.00p -2.50%
Rio Tinto (RIO) 6,017.00p -2.04%
Spirax-Sarco Engineering (SPX) 14,160.00p -1.94%
Glencore (GLEN) 313.95p -1.91%
Anglo American (AAL) 2,918.50p -1.83%
Ocado Group (OCDO) 1,798.50p -1.72%
AstraZeneca (AZN) 8,221.00p -1.50%
Weir Group (WEIR) 1,834.50p -1.24%
Barclays (BARC) 167.10p -1.19%

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