Travel, tobacco and electricals

The FTSE100 fell back from yesterday’s record high for the year with crude prices on the retreat once again and ahead of a raft of economic news. Wall Street closed higher overnight, while Asian markets were mixed.

“Travel group TUI topped the blue-chip index in early trading after a sunny update,” says AJ Bell Investment Director Russ Mould.

“TUI, which owns Thomson and First Choice, expects underlying earnings to rise by at least 10% as the fleet-footed travel group shifted its focus from areas which have been targeted by terrorists, such as North Africa and Turkey, to mainland Spain, the Balearics and the Canaries. Longer haul destinations such as Mexico, the Dominican Republic and Jamaica are also seeing good demand.

“Food wholesaler Booker’s total sales rose in the fourth quarter but like-for-like figures were hit by price deflation. Tobacco sales continue to be hit by the ban on small stores displaying products and were down 6.1% on a like-for-like basis.

“Online electrical white goods retailer AO World’s shares surged after it raised its full year forecasts. AO World continues to gain market share in the UK and its European business is also doing slight better than expected.”

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