FTSE drops, NMC leads the way
Fiona Cincotta January 8, 2020 12:04 PM
Big Iran-related headlines are catching investors’ eyes this morning but they are covering up a slew of company related news that is rocking the FTSE.
Big Iran-related headlines are catching investors’ eyes this morning, but they are covering up a slew of company related news that is rocking the FTSE.
Abu Dhabi-based hospital operator NMC Healthcare dropped 15% in early trade after two of its main shareholders said last night they would sell around $490 million worth of their holdings in order to reduce their debt.
Airlines and travel operator TUI are losing ground in reaction to another crash of a Boeing plane. The plane operated by Ukrainian Airlines crashed after takeoff just kilometres away from Tehran and although UIA confirmed that it was unrelated to any terrorist action it is too early to tell whether the burden of responsibility here lies with Boeing - as it was a different plane from the grounded 737 Max - or the airline itself.
Sainsbury reported lower third quarter sales causing shares to slip but the decline was relatively modest at 0.36% in a signal that the overall UK retail confidence may be improving slightly now that the election is over and Brexit is firmly on course. This is also borne out by Halifax’s report that UK house prices rose to a 13-year high in December following a rise in November.
Oil spikes then eases
Oil prices remain at the mercy of geopolitics and are whipsawing in sync with military action in the Middle East. Brent crude spiked to $70.88 immediately after the Iran strike news but has since given up a large portion of the gains to trade 0.42% higher. The actual threat to supplies from the Middle East seems relatively small at the moment with traffic through the Straits of Hormuz running smoothly.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.