The FTSE 100 index struggled for direction in a decidedly muted Tuesday trading session and closed 0.4% lower at 7119.70 points while the FTSE 250 Index fared slightly better, closing up 0.18% at 24,102.19 points.
Trading volumes are likely to remain light given that many of the traders and fund managers continue to be on holiday. The performance of the FTSE 100 in part mirrored that of its American counterparts that also lacked momentum and direction in early trading.
At the London close, the S&P 500 Index, and the NASDAQ Composite Index both slipped into negative territory. The Dow Jones Industrial Average was trading 0.05% higher.
MAJOR STOCKS ON THE MOVE
British Airways-owner International Consolidated Airlines (IAG), Ryanair (RYA), EasyJet (EZJ) and Wizz Air (WIZZ) all fell after European Union governments agreed on Monday to remove the USs from the EU’s safe travel list. IAG was the biggest faller on the FTSE100 at the close, shares were trading 2.6% lower at 159p. Wizz Air was one of the biggest FTSE 250 fallers at the close, and its shares finished the session down 2.9% at 483p.
Distribution business Bunzl (BNZL) was another major share price faller on the FTSE 100 index. The share price had fallen by 1.9%% at the close to 2628p. This was despite the group fist half revenues up by 6.3% at constant exchange rates and an increase in operating profits to £366.8 million. However the market has focused on a drop-off in pandemic-related business and warnings on staff and materials shortages soured sentiment
Drugs developer GlaxoSmithKline (GSK) eased 1.1% to £14.58 at the end of the trading session. This was in response to beginning Phase III trials of its adjuvanted Covid-19 vaccine candidate, which will see its compared to the Oxford/AstraZeneca (AZN) Covid-19 vaccine.
BOARD SHAKE-UP CALL
Aero-engineer Rolls-Royce (RR.) fell 2% to 114p at the close, after the company’s largest investor, Causeway Capital, called on incoming chair Anita Frew to ‘refresh’ the board. Causeway Capital also wants the company to consider the future of its power systems business.
Computer services company Computercenter (CCC) ended the session 1.8% higher at £28.84. This was in response to the group having lifted its annual guidance, citing robust trading across all its geographies in July and August.
Computercenter said that even if it delivered a flat second-half performance, it would end the year 10% ahead of current market expectations for adjusted pre-tax profit.
SMALL CAP WRAP
Among the small-caps, Futura Medical (FUM:AIM) stood out with a 3.2% advance at the close after the group inked licensing deal for its fast-acting erectile dysfunction gel covering Brazil and Mexico.
Training solutions group Pennant International (PEN:AIM) slumped 14% to 32.5p as it forecast a first-half loss after its performance was hampered by contract issues with General Dynamics.
Pennant said it expected a 'significant' improvement in the second half and forecast positive operating earnings for that period.
Internet platform company CentralNic (CNIC:AIM) jumped 6% to 96p, having forecast full-year profit and revenue at the upper end of market expectations.
CentralNic's first-half losses had narrowed, thanks to a combination of underlying organic growth and acquisitions.
