GSK legal woes drag on FTSE 100 while Shein float rumours continue to excite investors, confident sector forecast sees EasyJet and IAG soar and Hollywood Bowl ends day in red despite positive update

“GSK’s legal woes saw shares in the pharma giant plunge, dragging down an otherwise steady-away FTSE 100 with investors smelling the winds of change,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“A rate cut from the ECB has been widely touted, even if the number of cuts expected over the course of the year has been pared back following slightly warmer inflation data than had been hoped for.

“After last week’s disappointing results from JD Sports, investors have taken stock and taken advantage of Friday’s share price fall. The retailer wasn’t the only one doing good business on the blue-chip index, with Frasers Group also on the front foot amid speculation that another fashion giant might soon join the FTSE ranks.

“Whether a Shein listing would be a boon or a potential stink bomb, it would certainly get the world talking and could lead to other companies giving London a fresh look.”

Airline Sector

“It’s not only Brits that love to travel. Since the pandemic the whole world seems to be afflicted with a case of wanderlust. It doesn’t matter that cost of living pressures have taken a big bite out of people’s discretionary income and gobbled up savings, jetting off to foreign countries is a pleasure that few are willing to do without.

“The global industry predicts revenues will cruise close to the $1 trillion mark, a confident forecast that provided a fair wind for EasyJet, IAG, TUI and Wizz Air shares to soar.

“But this is a sector which is also being hampered by supply problems as plane-makers Boeing and Airbus both deal with production issues. Though the latter is confident of meeting its full year delivery goals.

“Keeping bums on as many seats as possible is vital to maintain margins, so any waning demand will require some deft pricing to keep planes profitably full.”

Hollywood Bowl

“It might seem counterintuitive that a stonking set of results can often trigger share price falls, but sometimes the potential for a spot of profit taking is too much to pass up.

“Hollywood Bowl shares have ended the day in the red despite a record half year and a hefty increase in dividends.

“Smart pricing has pulled in punters for a family friendly night out that doesn’t break the bank. The company has spent its money in all the right places including branching out into Canada, a feat which few UK companies have managed to pull off successfully.”

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