Last Wednesday, the share price of Thomas Cook, a provider of package holidays, has continued to decline after having more than £175 million wiped off its market value last Tuesday.
The company announced its third profit warning in a period of five months. It blamed the long summer heatwave of the United Kingdom for a decline in Brits going abroad.
The shares in the FTSE 250 company plunged by as much as 12 percent as the markets opened last Wednesday morning prior to recovering to a loss of four percent by midday. It comes after recording a loss that amounted to 23 percent by Tuesday night’s close.
Other London-listed companies are also feeling the heat, with The Restaurant Group (TRG), the newly-minted owner of Wagamama chain, leading the fallers by lunchtime with a loss that reached nearly 10 percent. Its shareholders narrowly approved a deal to acquire the Asian fusion restaurant last Wednesday morning, with nearly 40 percent of the investors voting against the acquisition.
Nostrum, a mining company, was another faller. It lost more than six percent today after the sector weighed heavily on stocks last Tuesday because of the now-omnipresent heightening trade tensions.
In travel and leisure, the summertime woes of Thomas Cook have had a knock-on impact on the other providers.
The share price of Easyjet has dropped by more than three percent as the analysts at Keppler Cheuvreux downgraded its rating to “hold,”, while Tui is down by nearly two percent.
On The Beach, a rival online holiday retailer, however, is up by more than five percent. It now boasts a bigger market cap as compared with Thomas Cook, after having recently reported an increase in profit at the end of its financial year.