Business Irish

Wednesday 18 July 2018

Bad week for Ryanair shares ahead of Q1 results tomorrow

Michael O'Leary of Ryanair, down 6pc last week Picture: Stefan Rousseau/PA Wire
Michael O'Leary of Ryanair, down 6pc last week Picture: Stefan Rousseau/PA Wire
Gavin McLoughlin

Gavin McLoughlin

Ryanair shares lost 6pc in Dublin last week ahead of its Q1 results tomorrow.

The airline's great rival Easyjet said on Thursday that currency volatility. security issues, and consumer confidence were affecting its performance. Easyjet boss Carolyn McCall said it was the hardest operating environment she had encountered since taking over as chief executive six years ago.

The Easyjet update will raise fears that Ryanair may present weak result, Merrion Stockbrokers senior equity analyst Darren McKinley said.

Irish shares posted a second consecutive week of gains, inching closer to pre-Brexit referendum levels.

The Iseq index closed on Friday at 5808.02, up just under 0.3pc on the previous Friday's close, but down around 70 points from a weekly high posted on Wednesday.

Bank of Ireland was one of the best performers for a second week in a row, adding almost 7pc on top of last week's near-10pc rise. It was punished heavily after last month's vote and is still well off pre-referendum levels.

Smurfit Kappa rose 6pc in the Monday-to Friday period to close at €21.70 each in Dublin. On the day of the Brexit vote it was trading at €23.13.

The FTSE 100 rose 0.9pc in the week to cap its longest stretch of gains since November 2014. A plunge in business activity post-Brexit spurred speculation the Bank of England will loosen policy.

A Purchasing Managers' Index combining flash estimates of services and manufacturing slumped to a 2009 low of 47.7 in July, below the 50 level dividing expansion from contraction.

For Bank of England officials seeking signs the Brexit vote will hurt the economy before considering boosting measures, the report "could provide the smoking gun they have been looking for," IG market analyst Joshua Mahony wrote in a note.

(Additional reporting Bloomberg)

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