LAST week’s reports of tumbling profits and the ongoing confusion over the economic outlook for Europe is weighing on International Airlines Group, the stock of the merged BA and Iberia entity, IAG. Even the prospect of adding more prized take off slots at Heathrow, through the reported plans to purchase competitor BMI, is failing to deliver any cheer, as the share price descends rapidly back towards post-merger lows. IG Markets quotes 152.3p-152.4p.
Energy provider Scottish and Southern Energy reports tomorrow. Households are tightening their purse strings as the cost of using energy becomes increasingly expensive. This may have a knock-on effect on its revenues. It was recently downgraded by Goldman Sachs with a target of 1,230p. Capital CFDs quotes 1,319.3p-1,321.7p.
Gold has had a bullish few days recovering from the $1,600 an ounce mark rising back towards $1,800. It would indicate that the bulls are back in town, driving the price of the precious metal higher, as investors pile back into the safe haven. Capital CFDs quotes $1,766.0-$1,766.4 for spot gold.
Admiral Group releases an interim management statement tomorrow. Its shares recently hit a 52-week low of 1,089p, but bounced hard off the 61.8 per cent Fibonacci retracement of the 2008 lows, to 2011 highs, at 1,100p. With a dividend yield of around 6.5 per cent and a potential recovery in the share price on the horizon, dips to around 1,100p should be used to buy with 1,350p as a target. Spread Co quotes 1,199.1p-1,202.9p.