Fears of contagion from the growing crisis in Turkey hit UK stocks this morning. The Turkish lira has dropped 20% in recent days, extending its losses for the year to date to upwards of 40%. Early on the FTSE 100 was down 0.64% at 7,617.81.
The collapse in Turkey’s currency also hit companies with direct exposure to the country – travel operator TUI (TUI) falling 3.5% to £15.11 and DP Eurasia (DPEU), which operates the Domino’s Pizza franchise in the country, dropping 13.4% to 92.7p
In a statement this morning the company says the incident, which left another worker badly injured on Friday, will mean underlying operating profit will be between £10m and £20m lower than previous expectations in the October 2018 financial year although notes it is too early to fully quantify the impact on the current and next financial years.
Contracts for difference broking house Plus500 (PLUS) posts a large rise in first-half profit after it more than doubled customer numbers, though it warns it won’t be able to repeat the stellar performance in the second half.
Net profit for the six months through June is $261.7m, up from $90.7m a year earlier. The shares fell 11.2% to £17.83 as the company leaves full year forecasts unchanged despite the strong trading, implying a significant deterioration in the second half.
Drug maker Shire (SHP) is unmoved despite its partner in Japan, Shionogi & Co, submitting a new drug application for the manufacture and marketing of a treatment for attention deficit hyperactivity disorder in adults.