Airlines nosedive with quarantine rules extended to more nations

TRAVEL stocks tumbled after the Government added countries including France, the Netherlands and Malta to its list of virus hotspots.

Airlines were the hardest hit: British Airways owner IAG headed the fallers on the FTSE 100, down 9.9p to

194.6p, while Tui and

easyjet led the losers on the

FTSE 250, down 29.1p to 315.6p and 40p to 570.8p respectively.

Travel stocks were the worst performers across Europe as the Continent’s top indices all slid, with a risk-off mood gripping markets amid continued concerns about the pandemic’s future path.

Disappointing US retail sales data, which showed the rebound in consumer demand is rapidly slowing, did little to shift moods, although equities pulled up from session lows in the early afternoon.

Builders and banks outperformed on the FTSE 100, with Persimmon, Natwest and Barclays among the dozen risers on the blue-chip index.

On the FTSE 250, Greencore shares dropped 8.3p to 120.5p, falling for a second session after the group reported a coronavirus outbreak at its plant in Northampton.

Almost 300 people tested positive for the virus after an outbreak at a factory where Greencore makes sandwiches for Marks & Spencer. All those who tested positive were reportedly self-isolating yesterday. Goodbody’s Jason Molins said the situation was “not ideal”, but added the impact on Greencore’s operations should be “negligible”.

Elsewhere, Domino’s Pizza shares fell 18.6p to 339p after Citi warned the group’s stock looked “overcooked”.

Warning the FTSE 250 group faces risks skewed to the downside as it tackles long-standing issues, analyst Natasha Brilliant cut the stock’s rating to “sell”.

She warned Domino’s faced near-term headwinds and continued uncertainty over its dividend plans.

Examining website and app data, she warned a strong sales performance in April had likely moderated in the months since, with a weaker result during May and June as rival restaurants developed their own delivery offerings.

Investment management group Pollen Street was among the biggest mid-cap risers, climbing 24p to 820p after Honeycomb Investment Trust said it “remains convinced of the strategic rationale” for a merger with Pollen Street’s Secured Lending (PSSL) investment trust.

The PSSL board snubbed Honeycomb earlier this week as it awaited a decision on a rival bid from Waterfall Asset Management.

Waterfall has been mulling a cash offer since February, with the deadline for a decision extended five times due to the coronavirus. Waterfall has until 5pm on Sept 8 to announce a firm intention to make a takeover offer.

Shares in struggling retail landlord Hammerson firmed 0.3p to 50.9p after a filing revealed director Desmond de Beer had purchased 6.3m shares in the group at a cost of roughly £3.3m.