FTSE 100 movers: IAG tanks amid Covid fears; supermarkets rise
By Michele Maatouk
Date: Monday 21 Sep 2020
(Sharecast News) - London's FTSE 100 was down 3% at 5,828.13 in afternoon trade on Monday amid worries about rising Covid cases and tougher restrictions.
British Airways and Iberia parent IAG was the standout loser amid worries about the impact of further Covid-19 restrictions.
Rolls-Royce tanked after the engine maker confirmed it is considering a potential £2.5bn fundraising. Responding to media speculation over the weekend, the company said it was reviewing "all funding options" with the intention of strengthening its balance sheet.
GKN owner Melrose Industries was also under the cosh, along with housebuilders.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The travel industry has again been left reeling after news that the UK government is seriously considering another national lockdown. British Airways' owner IAG is one of the biggest fallers as tougher widespread restrictions on movement are likely to push any recovery for the airline industry even further into the future and that concern has had a domino effect on aircraft engine manufacturer Rolls Royce, as investors see no end in sight for the falling demand for new planes.
"Rolls Royce has already cut staff and shed assets and now, to help see it through the crisis, it's being forced to look closely at how it can raise £2.5bn, with a rights issue now on the cards."
Amid the sea of red, supermarket chains fared the best, with Tesco and Morrisons actually trading higher, along with food delivery company Just Eat, while Sainsburys suffered only small losses amid expectations of increased demand and potential stockpiling ahead of a possible second lockdown.
FTSE 100 - Risers
Tesco (TSCO) 223.60p 1.82%
Morrison (Wm) Supermarkets (MRW) 176.45p 1.26%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,480.00p 0.62%
B&M European Value Retail S.A. (DI) (BME) 458.50p 0.59%
Spirax-Sarco Engineering (SPX) 10,675.00p -0.09%
Sainsbury (J) (SBRY) 193.55p -0.74%
Bunzl (BNZL) 2,438.00p -0.77%
Reckitt Benckiser Group (RB.) 7,346.00p -1.13%
Halma (HLMA) 2,251.00p -1.23%
DCC (DCC) 6,312.00p -1.38%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 98.46p -10.94%
Rolls-Royce Holdings (RR.) 165.15p -8.33%
Melrose Industries (MRO) 110.95p -7.54%
Persimmon (PSN) 2,338.00p -6.33%
Barratt Developments (BDEV) 445.00p -6.10%
WPP (WPP) 565.60p -5.67%
Johnson Matthey (JMAT) 2,351.00p -5.54%
Intermediate Capital Group (ICP) 1,186.00p -5.27%
CRH (CRH) 2,777.00p -5.16%
British Land Company (BLND) 332.00p -5.14%
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