British Airways, Iberia and Aer Lingus airlines group IAG shares climbed by 4.7 per cent, or 7.45p, to 167.45p as investors welcomed a resumption of dividend payments.
IAG last paid an interim dividend in 2019, months before the pandemic grounded airlines around the world which caused financial havoc.
The dividend accompanied stronger-than-expected second quarter results as it scrapped a takeover of Spanish airline Air Europa. Panmure Liberum transport analyst Gerard Khoo said the resumption of dividends highlighted the strength of IAG’s cash generation and balance sheet.
He noted that it is the only airline for which he has raised earnings estimates in this reporting round. But the overall mood was cautious as global markets plunged, led by tech issues on US recession fears.
The FTSE 100 shed 1.31 per cent, or 108.65 points, to 8174.71, while the FTSE 250 dropped 2.95 per cent, or 632.88 points, to 20,826.35.
Flying high: British Airways owner IAG climbed by 4.7 per cent
Scottish Mortgage Investment Trust, which has significant holdings in US chip stocks, lost 4.5 per cent, or 38.4p, to 813.2p. US-focused investment firm Pershing Square was also a big faller, tumbling 5.5 per cent, or 208p, to 3588p.
Japan-focused investors struggled after equities in Tokyo tumbled. Fidelity Japan Trust, which has investments in Nikkei constituents, shed 7 per cent, or 12p, to 160.5p, while Baillie Gifford Shin Nippon, which backs smaller firms, fell 3.7 per cent, or 4.2p, to 111p.
Away from tech troubles, drugs giant GSK rose 2.4 per cent, or 36.5p, to 1562.5p on news the US Food and Drug Administration has approved its Jemperli treatment in combination with chemotherapy and for its own use in adults with endometrial cancer.
But product testing and certification firm Intertek fell 1.4 per cent, or 70p to 4884p even though it said it was on track to hit medium-term targets after improving margins boosted first-half performance.
And luxury group Burberry dropped 4.9 per cent, or 37.2p, to 730.2p after Italian footwear and leather goods firm Salvatore Ferragamo reported a slump in profits.
Luxury car maker Aston Martin also reversed, shedding 4.1 per cent, or 6.3p, to 145.9p on news it has raised £135m through a debt issue as it prepares to scale up sales.
Chief financial officer Doug Lafferty said the bond issue came after encouraging feedback in the wake of first-half results.
Among small caps, NCC Group added 8.1 per cent, or 11.8p, to 156.8p after it agreed to sell Fox Crypto, part of its cyber division in the Netherlands, for 77m euros (£65.7m). Lender Vector Capital rose 18.2 per cent, or 5p, to 32.5p as it unveiled a £3.7m return to shareholders via a tender offer of shares at 33p each, which mitigated against a drop in half-year results.It is to leave AIM, as it has been unable to access new equity capital on acceptable terms.
And Skinbio Therapeutics declined by 3.5 per cent, or 0.5p, to 13.75p as the life science company announced a private placing of shares at 10.5p each.
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