Low-cost carrier Ryanair (RYA) lowered its full-year adjusted profit forecast on Monday, citing lower traffic and forward bookings due to a series of strikes by its crews. The company says it now expects profit for the year to range between €1.1bn and €1.2bn, which compares with a prior forecast of €1.25bn to €1.35bn.
That goes down badly with investors who market the stock more than 8% lower in early trade on Monday, to €12.02.
Rival airlines EasyJet (EZJ) and British Airways-owner International Consolidated Airlines (IAG) also see their share prices weaken on the news, with the former heading the FTSE 100 faller list in early trade on Monday, down 4% to £12.62.
IAG shares are 2.7% off at 642.6p.
Overall UK markets begin the week firmly on the back foot with the FTSE 100 falling by around 30 points, or 0.4%, to 7,477.52.
ASTON MARTIN NARROWS IPO RANGE
Luxury British carmaker maker Aston Martin said it had tightened the price range for its stock market listing to between £18.50 per share to £20.00, according to news agency Reuters.
That’s below the £5bn market value top end range that would have probably seen the company go straight into the FTSE 100 at the next reshuffle.
The company also confirms that it has covered its planned share sale at that level with investors eager to participate in the flotation. The company’s had originally set a £17.50 to £22.50 range of selling share on the stock market.
British pensions provider Just Group (JUST) is to lose its Chief Financial Officer of 12 years Simon Thomas at the end of the month.
That comes as a blow for investors who held Thomas in high regard. Just Group shares slide 6.5% on the news to 82.6p, valuing the business at about £776m.
British outsourcing firm Mitie (MTO) said on Monday it plans to sell its pest control business to Rentokil Initial (RTO) in a £40m cash deal. But investors are more concerned with ongoing tough trading conditions across the outsourcing industry, on which Mitie updated the market last week.
Shares in the company slip 0.7% lower to 145.7p, having traded above the 250p level as recent as November 2017.
MINERS UNDER THE SPOTLIGHT
Avocet Mining (AVM) warned on Monday that it could be broken up as the struggling gold miner continues talks with its largest shareholder, Elliott, to restructure its debt. The shares slump more than 17% to 9.9p.
Mining giant Rio Tinto (RIO) and its joint venture partners, Mitsui, Nippon Steel & Sumitomo Metal, plans to invest about $1.55bn to maintain production capacity at two iron ore projects in Western Australia.
Rio shares nudge 0.6% lower at £38.58.
Gold miner Randgold Resources (RRS) has reportedly run into opposition from the Democratic Republic of Congo’s government, which is insisting that it authorise the acquisition by Canada’s Barrick Gold of Randgold’s stake in a Congolese gold mine.
Randgold shares slide 1.6% to £53.58.
Gold prices dipped on Monday as the dollar firmed in the wake of indications from the US Federal Reserve last week that it will pursue a tighter monetary policy.
Brent crude oil prices rose to their highest since November 2014 on Monday ahead of US sanctions against Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), that kick in next month.
