FTSE 100 manages to recover some of its earlier losses
FTSE 100 manages to recover some of its early losses on Friday
Friday, 21, May 2010 05:11
By Sarah Garrod.
A tumultuous day on the UK's leading shares index saw it regain some of its earlier losses by close of trade on Friday.
By lunchtime the FTSE 100 had dipped below the 5,000 mark for the first time since November, but managed to recover some of its lost ground.
As the markets closed, the top 100-blue-chip companies were down 0.2 per cent, shedding 10.2 points to end at 5,062.93.
Leading the gainers on the index was Xstrata, adding 6.36 per cent, while Antofagasta added 3.81 per cent and Eurasian Natural Resources four per cent.
Weighing on the FTSE, BP was the largest drag, as the oil giant battled to control an oil spill in the Gulf of Mexico. By close of trade it had lost 4.18 per cent.
Despite reporting record losses for the last year, British Airways added 0.86 per cent.
Nick Raynor, investment adviser at The Share Centre, commented: "It has not been a good year for British Airways (BA), with pre-tax profits down 32 per cent to £531 million for the year ending March 31st 2010. The airline has had a lot to deal with in the last 12 months. The economic crisis, volcanic ash cloud and the industrial strike action have all had a part to play.
"The airline industry as a whole has taken a hit recently, EasyJet also saw its share price fall as the volcanic ash cloud caused uncertainty in the market. Until we can be sure of the full extent of the financial damage caused, we warn investors to stay away from the industry as a whole.
"BA has suffered more than others in the industry, as cabin crew strike action in March cost the airline more than £40 million. News of a further 20 day strike, likely to cost £138 million will come as more bad news for investors.
"However, for investors in it for the long haul, the deal to merge with Spanish airline Iberia could be the cost saving measure to help kick start BA's share price skywards once again."