UK: London markets hit by fears of a protracted war in Iraq
London’s equity markets were yesterday hit by fears that stronger-than-expected resistance by Saddam Hussein’s troops could lead to a drawn-out war in Iraq.
The FTSE 100 index of leading shares was down some 3.1 per cent to 3,743.3 – still nearly 14 per cent above its 12 March low but hardly in the best of health. The most dramatic falls were in the media and insurance sectors after impressive gains over the last seven days, which have seen the FTSE 100 rise by nearly 17 per cent.
In the travel sector, fears of higher oil prices and falling passenger numbers led to a gloomy session. Shares in British Airways fell 6.5p to close at 118.5p after KLM played down rumours of a merger between the two carriers; KLM’s shares dropped 3.5 per cent on the Dutch market. The no-frills carrier EasyJet saw its shares drop by 6.75p to end the day at 239.75, its rival Ryanair also suffered; its shares falling 10.5p to 446p.
The online travel provider Ebookers released gloomy sales figures for the first quarter of 2003, and after warning that military action in the Gulf would further hit sales, saw its shares fall 30p to 220p. Despite the disappointing results, however, The Times’ Tempus column is still recommending the shares as a “buy”.
