Yesterday’s vaccine-induced buoyant mood wears offOn May 19, 2020 by Thomas Belayneh
By Thomas Belayneh
Investor sentiment cooled today after the strong showing of equities yesterday.
The FTSE 100 closed a shade lower today at 6,002.23 (0.77% down on Monday’s stellar rise) amidst comments from Rishi Sunak to expect a recession the likes which the UK has never seen before.
International consolidated airlines group (Ticker:IAG) lead the pack with an 8.16% rise as investors continue to rekindle their love for travel and leisure stocks.
IAG also made the announcement that Luis Gallego will succeed Willie Walsh as Chief Executive Officer of the group on 24th September. Luis Gallego is currently CEO of Iberia, the Spanish flag carrier, and a graduate of Barcelona’s prestigious IESE business school. IAG reported a loss of 1.7 billion euros for its first quarter results on May 7th.
Willie Walsh intends to delay his retirement in order to help the airlines group through its current crisis.
Lagging the rest of its peers in the benchmark was Imperial Brands Group (Ticker:IMB). The listed cigarettes maker was the worst performer on the FTSE 100 after announcing it will cut its dividend in order to help with the repayment of its debt.
One of management’s central goals is the reduce gearing to 2 – 2.5x by the end of 2022 and believe the money they save by cutting dividends will assist them in this endeavour. This cut implies an annual dividend of 137.7p per share, which gives a dividend yield of 8.9% using today’s closing price.
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