FTSE 100 was trading down 2.6% at 7,050 following the news of Russia’s invasion lead to a fire in one of the largest Ukrainian nuclear power plants.
Oil prices continued to climb despite efforts to boost supply, but failed to lift shares in FTSE 100 oil companies with the market choosing to focus on the impact on household bills and further inflation.
“With the invasion of Ukraine by Russia now into its second week, stock markets continue to battle the threat of even higher inflation and a potential economic slowdown,” says Russ Mould, investment director at AJ Bell.
Tensions also rose as western powers mulled new sanctions on Russia which could potentially lead to an escalation if Russia chose to lash out in response.
“There will be more Russian banks taken out of the SWIFT system. I suspect all Russian-flagged ships will be banned from entering EU ports,” said Simon Coveney, Ireland’s foreign minister in an interview with RTE.
Putin has recently said “we do not see any need here to aggravate or worsen our relations. And all our actions, if they arise, they always arise exclusively in response to some unfriendly actions, actions against the Russian Federation.”
Broad FTSE 100 declines
International Consolidated Airlines shares have crashed 15% since Monday on concerns holiday makers will hold off from making bookings with a backdrop of war and rising prices.
ITV shares have continued their dip from yesterday and are trading down 6.5% to 74.9p after announcing their expansion plans for their streaming services. Despite a rise of 28% in revenues to £1.7bn, the investment of £180m into ITVX is not being taken well by investors.
HSBC shares were a major drag on the FTSE 100 after a 4.9% drop to 470.9p in Friday afternoon trade. Due to the exposure to global operations by HSBC, the bank is particularly exposed to geopolitical risk.
Marks & Spencer shares have seen a 2.7% dip on Friday after having to postpone shipments to FiBa group, M&S’ Turkish franchisee’s Russian business.
Hays’ shares have fallen 6.9% to 114.9p post the announcement of ceasing all business in Russia. The recruitment agency has chosen to shut their offices in Moscow and St Petersburg.
Coca-Cola HBC shares have been tanking all week and today, the shares were down 1.1% to 1,581p per share. The bottling company had to halt production in their Kiev plant as a result of the invasion. Emerging markets are CCHBC’s largest contributors to their revenues, and with the production pause, serious consequences are expected to be seen in their next earnings update.
Evraz volatility
Evraz shares soared 49.2% to 80.1p as investors jumped on the rollercoaster that is FTSE 100 shares with exposure to Russia. However, with the conflict in Ukraine accelerating rapidly, the company’s future remains uncertain and the shares look set for a continued volatility.
Polymetal saw its stock climb to 25.8% to 223p due to similar circumstances as bargain-hunters swooped in to purchase the stock after its lost 80% of its value in 2022.
Fresnillo saw a rise of 6.3% to 726.7p due to increasing gold and commodities prices, with interest accumulating in safe haven investments such as gold as market volatility spikes.