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After the recent market plunges, analysts believe it may be time to start looking for bargains among the beleagured.
But there is no sign of that happening yet.
The FTSE 100 hit a twelve month low on Thursday and is down another 49.40 points at 6382.45 in early trading, following a 334 point slump on Wall Street overnight.
Worries about the state of the global economy have been growing in recent days, with signs of a slowdown in China and Germany heading closer to a possible recession. The IMF did not help, by cutting its global growth forecasts, while the cheap money taps the central banks have been using to support the markets and economy are gradually being turned off.
On top of that are the geo-political worries - air strikes in Syria, the situation in Ukraine, and the fallout of recent protests in Hong Kong.
And of course, the spread of the Ebola virus.
Mike McCudden at Interactive Investor said:
The stuttering global economy continues to spook investors who appear to be on a mass exodus from equities to safer havens. Furthermore, with the German economy leading the euro zone from the frying pan in to the fire there are grave concerns for the future of the region.
However, when fear grips, opportunities arise and both short and longer term investors will be lapping up opportunities as they come in droves.
With Ebola possibly causing disruption, Tui Travel is down 14p at 342.9p and cruise company Carnival has slipped 71p to £21.97. British Airways owner International Airlines Group has lost 5.1p to 327.9p while easyJet has lost 13p to £13.28.
With oil falling on fears of oversupply and falling global demand - Brent crude is currently down another 1% at $89.14 a barrel - Tullow Oil is down 21.5p at 549.5p despite the company saying results from the Sputnik-1 well offshore Gabon were encouraging (despite it finding “non-commercial” oil levels) and the sale of its stakes in the Schooner and Ketch assets in the North Sea to Faroe Petroleum.
Royal Dutch Shell A shares are down 39p at 2206.5p while BP is 3.7p lower at 431.45p.
Mining shares are also under pressure, with Anglo American 38p off at £13.18 and Antofagasta has dropped 18p to 668p.
Among the mid-caps, Telecom Plus has put on 95p to £13.51 as the utility company reported a near 50% rise in full year profits and appointed Nick Schoenfeld, previously of Hanover Acceptances, as chief financial officer. Analyst Charles Hall at Peel Hunt said:
We are highly confident that the company will deliver our forecast of £63m in the current year, given the predictability of earnings, and we expect a significant increase in profits in H1, reflecting the increase in customers and the Npower deal. The company has announced that the interim dividend will be increased by 19%, reflecting the board’s confidence in the full year outcome.
