Market Report: Travel agents and airlines cruise higher

 

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As half-term gets under way City folk have holidays on their minds.

Travel agents and airlines cruised higher yesterday as banks mulled over falling oil prices and Ebola.

Goldman Sachs cut its forecasts for oil prices in the first quarter of 2015 from $100 a barrel to $85 – good news for those of us filling up the Fiesta.

Falling petrol prices could “enhance demand for air travel”, Morgan Stanley added. British Airways and Iberia-owner IAG, up 6.5p at 389.8p, EasyJet, 3p better at 1,441p, and Ryanair, €0.07 higher at €7.36, were highlighted as most likely to benefit. Tui Travel flew up 9.1p to 374.7p, and InterContinental Hotel was up 51p at 2,268p.

Low prices continued to trouble the oil industry. Elsewhere, banks were left reeling from European stress tests and the weakness of two heavyweight sectors left the FTSE 100 down 25.27 points at 6,363.46.

Underperforming engineer Smiths Group slipped 31p to 1,121p on news that finance chief Peter Turner is leaving. It was a different story for Renishaw – the engineer shot up 76p to 1,666p after a trading update. The company said strong revenue growth is set to continue.

Flybe’s turnaround continues apace, with investors treated to no fewer than three updates yesterday. The regional airline announced six new routes to and from London City Airport  and has signed a deal to offer business travellers access to Club Workspace’s office facilities. It cruised 6p higher to 116.25p.

Healthcare services group Totally rose 0.15p to 0.5p on AIM after winning an NHS contract in Hartlepool and Stockton-on-Tees to provide a clinical-health coaching programme. It’s Totally’s first job in the region.

Synectics, which provides surveillance products to casinos and banks, tumbled 100p to 215p on the back of its third profit warning of the year. It said a slowdown in the oil and gas industry was delaying the renewal and award of large contracts. As a result second-half profits will be “significantly” below the £5m forecast. Its chief executive John Shepherd will also retire next year.

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