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TUI bucks falling FTSE on summer bookings relief

Travel operator says bookings for summer holidays up 2% despite fears of slump due to terrorist attacks.

 
TUI bucks falling FTSE on summer bookings relief

TUI raced to the top of the FTSE 100, bucking a falling index amid investor relief that the travel operator is on track to meet its targets despite fears terrorist attacks would hit the business.

TUI (TUIT) jumped 5.4% to £10.83 despite a slump in the FTSE 100, which fell 32 points, or 0.5%, to 6,171. The travel operator, which owns Thomson and First Choice, said summer bookings were up 2% and it was confident of achieving its goal of growing earnings by 10% this year.

'TUI's pre-close update shows some encouragement for investors, despite geopolitical events that have affected the travel industry,' said Helal Miah, investment research analyst at The Share Centre.

'Turkish and North African destinations naturally saw a decline in travellers due to heightened concerns of terrorism, but consumers have simply switched to other destinations, with bookings to Spain and the Canary Islands doing particularly well.'

The FTSE 100 gave up some of the gains from yesterday's rally, with some investors likely to be banking profits as the month and quarter draws to a close.

'European bourses are on the back foot this morning with yesterday's Fed-sponsored rally looking like it has already run its course,' said Mike van Dulken at Accendo Markets.

Among 'mid cap' stocks, AO World (AO) jumped 4.8% to 181.5p after reporting fourth quarter results ahead of expectations.

'Online electrical white goods retailer AO World's shares surged after it raised its full-year forecasts,' said Russ Mould, investment director at AJ Bell.

'AO World continues to gain market share in the UK and its European business is also doing slightly better than expected.'

On the FTSE Small Cap index, shares in EnQuest (ENQ) surged 17.5% to 23.5p, amid continued bullishness over the oil producer's cost-cutting and benefits from Budget cuts to taxes on North Sea operators.

Nanoco (NANON) plunged 15.8% to 38p after the technology company issued a profit warning, due to lower royalty payments from its deal with US group Dow Chemical (DOW.N).

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