Austria lockdown weakens travel stocks, FTSE 100 lower
More strong sales figures from B&Q failed to stop shares in owner Kingfisher sliding today amid City fears that weary DIYers are planning a home improvement breather.
The group, which also owns Screwfix, believes “enduring” industry trends created by the pandemic, such as working from home, will continue to support demand.
Its third quarter figures appeared to support this, with B&Q’s like-for-like sales still 17.1% higher on pre-pandemic levels and the wider company also forecasting sales and profits at the top end of expectations for the year to January.
Despite gaining market share and reassuring on product availability, the Europe-wide retailer tumbled 5% in the FTSE 100 index as longer-term jitters were fuelled by the company’s lack of guidance on 2022 trading.
Shares dropped 16.6p to 320.6p but are still 17% higher in the year to date.
Alongside Kingfisher, the consumer goods giant Unilever was lower as investors gave a lukewarm reception to the £3.7 billion sale of the company’s P&G Tips and Lipton tea division to CVC Capital Partners.
The Marmite and Knorr owner fell after the deal was announced yesterday afternoon and dipped another 10.5p to 3812.5p today.
Travel-focused stocks were lower after Austria imposed new lockdown restrictions, forcing the FTSE 100 index to relinquish early gains. it stood 23.37 points lower at 7232.59 in the top flight’s worst weekly performance in two months.
Mining stocks provided some support after a rebound for the copper price, while grocery technology stock Ocado topped the risers board with a jump of 6% or 107p to 1883p. Royal Mail shares also remained popular among investors, rallying another 11.6p to 492.3p after its £200 million special dividend announced yesterday.
The Austria lockdown amid Europe’s renewed surge in Covid-19 case numbers weighed on several holiday stocks in the FTSE 250 index as easyJet fell 25.8p to 544.8p and TUI eased 9.4p to 205.3p.
The FTSE 250 index dropped 126.85 points to 23,449.37, but Marks & Spencer held firm at 236.1p as Deutsche Bank raised its price target to 265p in the latest City upgrade for the rejuvenated retailer.
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