Market Report: Stagecoach resilient in face of terrorist attacks

In the end, however, the day was characterised by resilience rather than panic. The early hedge-fund activity that knocked the market was not followed by selling by longer-term investors. Londoners had long feared such an attack and market professionals knew that equities had bounced back, eventually, from the shock of 11 September 2001, and the impact of last year's Madrid bombings. If anything, traders were keener to nick a bargain in the sell-off than to steer clear of the market altogether. By the end of the day there had been a significant amount of buying activity, and the London Stock Exchange recorded one of its busiest trading days, with 4.2 billion shares passing through its systems. The FTSE 100 closed at 5,158.3, down 71.3, while the mid-cap FTSE 250 was off 109.0 at 7,387.9.

Typical of the defiance of the day were the bus company shares, including those of Stagecoach, whose vehicle was blown up in Tavistock Square. Most saw their shares fall up to 10 per cent at their worst, but recovering to end less than 4 per cent lower. Stagecoach ended at 115.5p, down just 1.25p. National Express, which has doubled its presence in the London market, was down 30.5p at 880p; FirstGroup fell 10p to 323.5p; Arriva was off 12p at 534p; and Go-Ahead fell 31p at 1,248p.

The Stock Exchange had ordered market participants to turn off their so-called "black boxes", the computers which automatically generate share trading orders. These can often exaggerate market movements and were blamed for the extremity of the stock market fall in the days after 11 September 2001. Market makers were also relieved of their obligation to trade after the Exchange declared a "fast market" when more flexible rules apply.

The early theory was that terrorism would deter people from travelling, and would exacerbate the downturn in consumer confidence which has already triggered a string of profits warnings. So tourism stocks were hardest hit. British Airways was the worst blue-chip performer, off 11.5p at 260.75p, while the airports operator BAA fell 20p to 599p. EasyJet, which had published mildly disappointing June passenger numbers at the start of the day, ended down 10p at 254.25p, and Ryanair slipped €0.14 to €6.32. Shares in the tour operators MyTravel and First Choice Holidays were down 0.17p at 5.85p and 5.5p at 187.25p, respectively.

Carnival, the cruise operator, was 71p lower at 3,159p. And hotels groups were also marked down. Hilton was 9.75p lower at 288.25p, with InterContinental Hotels down 20p at 701.5p and Millennium & Copthorne Hotels falling 12.25p to 357.25p.

For a long time, there were no blue-chip stocks recording share price gains, but two closed higher. Amvescap was 13p better at 408p. On Wednesday it rejected a takeover bid from CI Financial of Canada. The hope is that CI will team up with the bigger Sun Life of Canada to make a knockout bid, or the drama will tease out another bidder. The other FTSE 100 stock on the rise, Shire Pharmaceuticals, was up a penny at 620p. The drug company agreed to pay $1.6bn (£920m) for the American biotech group Transkaryotic Therapies, but some of the US firm's shareholders are holding out for more money. Its shares are trading above the level of Shire's cash offer.

There was an early sharp sell-off on Wall Street, which came on top of the previous day's oil price-related drop, but again most of the ground was quickly recovered. One dealer said the effect of the attacks had not been as pronounced on the US markets as London traders had expected earlier in the day. "The world has gone hard to this sort of thing, and the shock effect gets less," he said.

There were even some traders looking, discreetly, for companies that may stand to win new business as a result of the attacks. Underground repair work was being added by some to this week's Olympics victory as a reason for buying Balfour Beatty, the engineering project expert, whose shares were up 1.75p to 349p. IG Group, the financial spread-betting firm which reported a busy day, was up 2.5p at 152p. And Eruma, a little company which makes bomb-proof blinds, which floated last week, jumped 0.75p to 7.75p.

Start your day with The Independent, sign up for daily news emails
News
i100 In this video, the late actor Leonard Nimoy explains how he decided to use the gesture for his character
News
Robert De Niro has walked off the set of Edge of Darkness
news The Godfather Part II actor has an estimated wealth of over $200m
Arts and Entertainment
Fearne Cotton is leaving Radio 1 after a decade
radio The popular DJ is leaving for 'family and new adventures'
Sport
Robbie Savage will not face a driving ban
football
Voices
voices
Life and Style
Nearly half of all young people in middle and high income countries were putting themselves at risk of tinnitus and, in extreme cases, irreversible hearing loss
health Nearly half of all young people in middle and high income countries are at risk of tinnitus
News
It was only when he left his post Tony Blair's director of communications that Alastair Campbell has published books
people The most notorious spin doctor in UK politics has reinvented himself
ebooks
ebooksA special investigation by Andy McSmith
Arts and Entertainment
arts + ents
Life and Style
fashion
Arts and Entertainment
James Franco and Zachary Quinto in ‘I Am Michael’
filmJustin Kelly's latest film tells the story of a man who 'healed' his homosexuality and turned to God
News
i100
Arts and Entertainment
Public Service Broadcasting are going it alone
music
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower