BRITISH Airways shares climbed another 2% today as investors chewed over the details of last night’s merger announcement with Spain’s Iberia.
The blue-chip firm, which rose 8% yesterday on speculation of an imminent agreement, expects to generate £360 million a year of savings from the tie-up.
The rest of the London market was in subdued mood after Wall Street closed lower last night, with the Dow Jones Industrial Average off nearly 1%. In the first hour of trading, the FTSE 100 Index stood 4.4 points higher at 5280.9.
As well as the gain of 5.9p to 220.9p for BA, retailers did well after John Lewis said department store sales surged by more than 13% last week.
Marks & Spencer was the main beneficiary as shares lifted 2.3p to 371.2p. Rival Next added 13p to 2026p.
On the fallers board, Rexam shares were 2% lower after the packaging firm said volumes remained under pressure, although this was offset by cost reduction initiatives and currency gains. Shares were down 7.7p at 281.3p.
Meanwhile, toy maker Hornby fell 3% or 4.75p to 136.25p after it cut its interim dividend due to the weakness of sterling.