IT fiasco fails to ground profits at owner of BA
London’s blue-chip index fell 1% yesterday after tobacco stocks were hit by news that the US Food and Drug Administration may force companies to cut nicotine in cigarettes down to non-addictive levels.
The FTSE 100 closed down 74.64 at 7,368.37, dragged down by British American Tobacco shares plunging £3.62 to £49.60 and Imperial Brands’ stock tumbling 130.5p to 3,315.5p.
BT dropped 5.75p to 310.4p after it said it will shell out £225million to Deutsche Telekom and Orange in an attempt to avoid legal action after its share price collapsed in the wake of its Italian accounting scandal.
And International Consolidated Airlines Group ended the day down 0.5p at 593.5p despite it reporting that lower fuel costs and a strong Easter helped halfyear operating profits.
Away from the top tier, property website Rightmove saw its shares rise 25p to £43.05 after reporting a 9% jump in pre-tax halfyear profits.