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FTSE100 tumbling at lunch as potential Grexit looms large

Published: 12:39 15 Jun 2015 BST

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FTSE100 was down 46 points at lunch as worries over Greece intensify after a breakdown of talks and easyJet shares (LON:EZJ) flew lower, weighing on the blue chip index.

FTSE100 is at 6,738 at the time of writing, with easyJet down 2.21% to 1,551p.

The fall by the budget flier came after RBC Capital Markets lowered the stock to 'underperform' from 'outperform'.

The share price target is 1,500p.

Meanwhile, turning to the bigger picture, the Greek saga simply refuses to go away and has intensified after debt talks, which were trying to strike an accord between Brussels and Athens broke down over the weekend.

The country has been trying to unlock funds to pay off debts and avoid a default on its €1.5bn repayment to the IMF. A part payment on this is due at the end of the month.

Commentators are now saying that the June 18 meeting of Eurozone finance ministers may be the key event in deciding whether the country avoids default and Germany appears to be warning that a Greece exit from the euro is becoming increasingly likely.

This possibility is gripping the market, says Chris Beauchamp at IG.

"Contact between the two sides appears to be getting more and more infrequent — a certain fatalism seems to have gripped the Greeks, as their exit from the eurozone appears more and more likely. Stock markets however would still rather see a deal, even if it were only to postpone the inevitable.

Insurer and pensions giant Standard Chartered (LON:STAN) was the biggest laggard, down 2.63% to 1,036p.

To the FTSE350 and shares in wine merchant Majestic (LON:MJW) slid  over 4% to 422p as it reported a 22.5% fall in pre-tax profit for the year to end March but its new boss said he was confident momentum could be restored.

The figure came in at £18.4mln compared to £23.8mln the year before on the back of increased admin and distribution costs.

Revenue, however, was up 2.3% to £284.5mln (2014: £278.2mln).

To  AIM and shares in student bar firm Eclectic Bar Group (LON:BAR) rocketed over 28% to 62.5p as it emerged entrepreneur Luke Johnson had agreed to pump £1.5mln into the firm.

Johnson has a long history of investing in food  and drinks establishments such as Pizzaexpress, is subscribing for 3mln shares at 50p a pop and will take over as unpaid non-executive chairman.

Chief Executive Officer Reuben Harley and Chief Financial Officer John Smith also plan to subscribe for 150,000 new shares each at the same price, raising a total of £1.65mln to be used a working capital.

Also up was mining group Galantas Gold (LON:GAL), which added over 26% to 7.75p. Last week, the firm revealed it had received planning consent so the Omagh mine can once again begin gold output and pulled the trigger on Ireland's only gold mine.

Junior mining stocks were in focus in fact. Orogen Gold (LON:ORE) added 20% to stand at 0.06p, while Regency Mines (LON:RGM) added 20% too.

To Asia focused ticket firm Galasys (LON:GLS) and its shares nudge a tad higher as it picked up a £500,000 contract for a new water Park in China.

Located near Zhengzhou Henan, the Yinji Water Park, opens this month, June, and will be an all year round Park thanks to dehumidisation technology.

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