Investors jump ship as Carnival hits record low
CRUISE company Carnival crashed to a record low after it warned it faces further losses as the cost of fuel and other essentials soar.
The company, whose operations include P&O Cruises and Cunard, the cruise line behind the Queen Mary 2, Queen Elizabeth and Queen Victoria ships, dashed hopes of a return to profit in the fourth quarter of the year.
Sky- high inflation has hammered an industry that has been running at a loss ever since the pandemic broke out in 2020.
Carnival posted a third-quarter loss of £690m despite a sharp jump in revenues to £3.9bn, and warned of another loss in the final three months of the year.
Shares fell 21.3pc, or 157p, to 581.8p – the lowest since it started trading on the London stock market more than two decades ago.
In a further blow to the travel sector, Tui fell 10.1pc, or 12.15p, to 108.15p after analysts at UBS cut its target price to 99p from 155p.
At the end of another turbulent week on financial markets, the FTSE 100 rose 0.18pc, or 12.22 points, to 6893.81 and the FTSE 250 jumped 2.25pc, or 377.94 points, to 17,168.34. In some much-needed respite, figures from the Office for National Statistics showed the UK economy grew 0.2pc in the three months to June, an improvement on its previous estimate of a 0.1pc decline.
Polymer maker Synthomer clawed back losses a day after a profit warning, rising 18.3pc, or 16.45p, to 106.5p, having slumped 35pc in the previous session.
The boss of insurance group Aviva bought more than £103,000 of shares in BP less than a month after joining the board of the oil giant. Amanda Blanc, who became a non-executive director on September 1, bought 23,500 shares at 439p each. Aviva rose 2.7pc, or 10.2p, to 388.2p while BP added 0.2pc, or 1.05p, to 433.1p.
Hikma Pharmaceuticals said it remained committed to meeting gender diversity targets as it beefed up its board with two female appointments, after a shareholder revolt in April because the level of representation on the board fell to 22pc from 30pc. Its latest hires will see 40pc of board roles filled by women. It rose 1pc, or 14p, to 1363.5p.
Asos became the latest online fashion brand to be hit with downgrades. Fears over falling consumer spending amid the cost of living crunch has weighed on the retail sector. HSBC maintained its ‘hold’ rating but cut Asos’s target price to 590p from 860p.
The note came after Boohoo this week warned that business had slowed in July and August. Asos fell 4.4pc, or 26p, to 569p while Boohoo was down 4.8pc, or 1.85p, to 36.45p. Joules appeared to have given investors enough reason to believe its turnaround plan could shore up the business.
A day after the ‘yummy mummy’ fashion brand tried to calm market jitters following reports it could become insolvent, it rose 26pc, or 1.3p, to 6.3p.
South West Water owner Pennon expects trading to remain in line with expectations even as it pencilled in higher energy bills.
In an update ahead of its interim results, the group said its power costs for the year will be around £50m more than last year’s figure of about £56m. Pennon rose 2.5pc, or 19p, to 787p.
Paul McDonald has stepped down as the boss of headgear and gas mask maker Avon Protection after five years at the helm. Bruce Thompson will become executive chairman from tomorrow until a new chief executive is in place. Avon rose 4pc, or 43p, to 1124p.
Doorstep lender Morses Club said a wave of customers seeking compensation for unaffordable loans means the business remains loss-making. Its shares fell 26.1pc, or 1.29p, to 3.65p.