London’s FTSE 100 Index reached the 5000 mark for the first time in almost a year yesterday as a boost in investor confidence showed little sign of waning. And travel companies led the way.
British Airways was the top performer in the leading index with a 10p rise to 211p, on indications of a tentative recovery in air travel and hopes that its long awaited merger with Iberia was finally making some progress. In addition, Commerzbank began coverage of the airline with an add rating. The boosts added to Tuesday’s gains on upbeat comments from rival Air France.
Elsewhere Thomas Cook added 10.8p to 245p, Thomson Holidays owner TUI Travel ticked up 7.2p to 256.7p and cruise ship operator Carnival cheered 71p to 2009p.
Thomas Cook was boosted as traders covered short positions ahead of news, which may arrive today, of the placing of the 44% stake held by the insolvent German retailer Arcandor. The £880m stake has been weighing on Thomas Cook’s shares since Arcandor collapsed in June.