Terror attack sees tourism shares drop

Market report Perry Gourley

Shares in leisure and travel companies came under pressuve in the wake of the latest terrorist attack in London.

The FTSE 100 fell 21.87 points to close at 7,525.76, with tourism-focused firms under pressure in the first trading session since the atrocity, which left seven people dead and dozens more injured.

Budget airline Easyjet and British Airwaysowner IAG were down 45p to 1,344p and 15.5p to 592p respectively, while Merlin Entertainments – the company behind the London Eye and Alton Towers – fell 13p to 524p.

Jasper Lawler, senior market analyst at London Capital Group, said: “An under-performance of travel and leisure stocks was a distinct reaction to the terror attack on London Bridge.”

Output in the services industry eked out its slowest growth since February and came in shy of expectations as inflation and general election uncertainty took its toll last month.

The closely-watched Markit/cips services purchasing managers’ index (PMI) fell to 53.8 in May, down from 55.8 in April and below economists’ expectations of 55.0. A reading above 50 indicates growth.

In stocks, online grocer Ocado saw shares surge before slipping back after it sealed a longawaited overseas deal for its software platform.

The FTSE 250-listed firm said it has signed an agreement with “a regional European retailer” to help it access website software and other technology. It said the customer “wishes to remain anonymous until it launches its online business”.

Shares in Ocado closed down 3.8p at 312.2p. The financial services group saw continued demand for its shares after buying financial adviser network Caerus Capital Group The property investment business saw losses per share increase in the what it said was a “difficult” first half of the financial year.