Sector movers: Thomas Cook, IAG drag down travel stocks

22nd Nov 2011 14:14

The travel and leisure sector was dragged lower on Tuesday after Thomas Cook plummeted over 70% after saying that it was in talks with its banks about borrowing more money. Thomas Cook said it was going back to its banks because of a "deterioration of trading in some areas of the business in the current quarter". It added that it would delay the release of its full year results, due out on Thursday, until the discussions were finished. Shares were trading around 10.8p in the afternoon, down from yesterday's closing price of 41.1p.Shares in International Consolidated Airlines lost over 4% as Iberia, which operates under IAG, is reported to be facing potential strike action from workers over the firm's plans to launch a new airline next year.The non-life insurance sector was performing well on Tuesday, with FTSE 100 giants Admiral leading the charge.FTSE 250 peer Amlin was recovering slightly after falling yesterday. Both UBS and Credit Suisse cut their targets prices for the stock on Monday, following the group's third quarter update last week in which it raised its estimated losses for catastrophes including the Japanese and New Zealand earthquakes.RSA Insurance also nudged higher after yesterday's fall. The firm is now on the look-out for a new chief financial officer after the current incumbent, George Culmer, announced his intention to jump ship to Lloyds Banking Group yesterday.BCTop performing sectors so far todayIndustrial Metals & Mining 3,798.18 +3.63%Industrial Transportation 2,115.71 +2.26%Insurance (non-life) 1,308.51 +1.68%Food Producers & Processors 5,399.36 +1.63%Household Goods & Home Construction 6,194.60 +1.55%Bottom performing sectors so far todayTravel & Leisure 3,969.94 -0.99%Health Care Equipment & Services 3,240.52 -0.96%Aerospace and Defence 3,100.65 -0.94%Software & Computer Services 697.64 -0.63%Electronic & Electrical Equipment 2,464.34 -0.38%