FTSE 100 movers: IAG flies higher after results; GSK in the black

2nd Aug 2024 14:01

(Sharecast News) - London's FTSE 100 was down 1.3% at 8,178.75 in afternoon trade on Friday.

IAG flew higher after the BA and Iberia owner said it would start paying dividends again, posted a rise in first-half profits and abandoned its pursuit of Air Europa.

Russ Mould, investment director at AJ Bell, said: "Against a backdrop of airlines slashing prices to fill planes and negative investor sentiment towards the sector, International Consolidated Airlines has issued a remarkably upbeat set of results.

"Strong travel demand over the past few years has enabled the airline to pay down debt and get its finances in order after a traumatic pandemic. The balance sheet is now deemed strong enough to warrant recommencing dividends, something that investors will welcome with open arms.

"Paying dividends also signals a big step forward for the company and effectively draws a line under previous fears about its financial strength. In essence, recommencing the dividend means the narrative can shift to how the business is growing, not simply how it is repairing previous damage.

"Walking away from a proposed takeover of Air Europa also shows the company has discipline and isn't prepared to spend a long time fighting antitrust regulators to get the deal over the line. Management has clearly decided its time is better spent elsewhere and to just move on. Investors often like companies that take decisive action."

GSK was in the black as it said the US Food and Drug Administration has approved its Jemperli treatment in combination with chemotherapy and then use on its own for adult patients with primary advanced or recurrent endometrial cancer.

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 169.55p 5.97%

GSK (GSK) 1,582.50p 3.70%

Haleon (HLN) 369.50p 3.21%

National Grid (NG.) 1,000.00p 2.04%

AstraZeneca (AZN) 12,740.00p 1.82%

Unilever (ULVR) 4,858.00p 1.59%

United Utilities Group (UU.) 1,048.00p 1.45%

Fresnillo (FRES) 599.00p 1.27%

Reckitt Benckiser Group (RKT) 4,149.00p 1.24%

Severn Trent (SVT) 2,621.00p 1.24%

FTSE 100 - Fallers

Melrose Industries (MRO) 485.80p -5.67%

Intermediate Capital Group (ICG) 2,018.00p -5.35%

Pershing Square Holdings Ltd NPV (PSH) 3,600.00p -5.16%

Ashtead Group (AHT) 5,194.00p -4.84%

Vistry Group (VTY) 1,309.00p -4.52%

Scottish Mortgage Inv Trust (SMT) 813.60p -4.46%

Barclays (BARC) 213.25p -4.33%

Mondi (MNDI) 1,475.50p -4.28%

3i Group (III) 2,969.00p -3.98%

Diploma (DPLM) 4,206.00p -3.97%