Daijiworld Media Network - London
London, Mar 21: UK shares declined on Friday, with travel and leisure stocks taking a hit after a major power outage at Heathrow Airport led to widespread flight disruptions.
The blue-chip FTSE 100 dropped 0.46%, though it remained poised for a slight weekly gain following two consecutive weeks of losses. Meanwhile, the FTSE 250 index slipped 0.47%, set to close the week flat after four straight weeks of declines.
A fire at a nearby electrical substation knocked out Heathrow Airport's power, leading to massive travel chaos. British Airways-owner IAG fell 1%, while other carriers, including Wizz Air and EasyJet, slid between 1.5% and 2%. Holiday Inn-owner IHG was among the biggest losers on the FTSE 100, shedding 2.7%. The overall travel and leisure sector slumped 1.7%.
Among other movers, JD Sports Fashion dropped 4.3% after Nike’s weak Q4 revenue outlook, while pub chain J D Wetherspoon tumbled 9%, the biggest loser on the mid-cap index, following a weak interim profit report. John Wood Group also fell 3.8% after a Jefferies downgrade from "buy" to "hold."
On a brighter note, ASOS surged nearly 25% after forecasting a significant improvement in first-half profitability.
Investors are now eyeing next week's inflation data and the government's half-yearly budget update for further market cues.