Manchester firms see dip in share prices on quiet day

SHARES in companies with a major presence in Manchester felt the squeeze on Tuesday, as the Government failed to reach a deal with local politicians over support for businesses during Covid- 19 restrictions.

In what was otherwise a mildly p o s i t i v e d a y f o r L o n d o n markets, AJ Bell and PZ Cussons, whose headquarters are in the city, dropped by 2.3 per cent and 1.6 per cent.

Meanwhile, AstraZeneca, which has a big factory in Manchester, saw its shares fall back 0.5 per cent.

It comes as the FTSE 100 rose slightly on Tuesday, gaining 4.57 points to end the day on 5889.22, a 0.1 per cent rise.

“Overall, there hasn’t been too much excitement in the markets today,” said CMC Markets analyst David Madden.

“Restrictions in some countries, because of the health crisis, are tighter and with the way things are going in terms of the number of new coronavirus cases, there are fears that further restrictions could be in the offing.”

L o n d o n ’ s t o p i n d e x w a s dragged up by British Airways owner IAG, which saw a growth spurt, rare in Covid- 19 times, after the news that passengers flying to Hong Kong and Italy can get one- hour virus tests at Heathrow Airport.

The countries require passengers to test themselves before departing the country of travel.

IAG’s shares jumped by 6.9 per cent on Tuesday as a result.

On the other side of the English Channel the Cac 40 in Paris was flat and the Dax in Frankfurt dropped by 0.9 per cent.

Across the Atlantic the S& P 500 and Dow Jones were both up by around half a per cent by the time markets closed in Europe.

However, Spreadex analyst Connor Campbell said that US politics could affect markets in New York later in the day.

“More volatility could still be expected in the run- up to Nancy Pelosi’s stimulus deadline this evening,” he said.

“That is unless investors are now comfortable with the assumption a deal isn’t getting done this side of the election, based on Joe Biden’s consistent lead in the polls ( and the sizeable relief package a blue wave would likely produce).”

In company news, shares in housebuilder Bellway dropped by 3.7 per cent after its profits dropped by nearly two thirds and it revealed a £ 46.8m charge after the Grenfell fire forced it to change cladding on some of its buildings.

Reckitt Benckiser’s gained some ground, closing up 0.01 per cent after revealing that sales in the three months to the end of September rose by 6.9 per cent.

Britvic, which makes Robinsons fruit drinks, said that it will accelerate its shift to 100 per cent recycled plastic for its drinks bottles.

Shares were up 6.4 per cent, but that is likely more to do with the 20- year deal it signed to produce and sell drinks from PepsiCo.

Trainline boss Clare Gilmartin has announced she will step down in the new year. The chief executive, who has run the business for seven years, will leave at the end of February although she will remain as an adviser in the future.

A barrel of Brent crude oil was 0.4 per cent cheaper at 42.45 US dollars by the end of play in Europe.

The biggest risers on the FTSE 100 were IAG, up 6.85p to 106.85p, Informa, up 19.3p to 436.9p and Melrose Industries, up 4.85p to 134.45p.

The biggest fallers on the FTSE 100 were Hargreaves Lansdown, down 281/ 2p to 13801/ 2p, Taylor Wimpey, down 2.15p to 115.15p, Avast, down 91/ 2p to 513p, Bunzl, down 44p to 2500p, and Just Eat Takeaway, down 168p to 9750p.