Market Watch

Tui has seen its shares fall 33 per cent since the start of the year as the industry was hit by fears over Thomas Cook, which spooked holidaymakers and investors recently when it turned to banks for extra support in the wake of falling sales.

But analysts say its rival’s difficulties could benefit Tui as customers switch because of fears their holidays could be cancelled if they book with Thomas Cook.

The Thomson Holidays and First Choice owner is expected to report a 5 per cent increase in underlying earnings to £468 million in the year to 30 September as higher prices compensate for lower bookings. Across the summer, the number of UK customers going away with the firm was down 1 per cent, while average selling prices were up 5 per cent, but the figures should be lifted by a late increase in bookings in markets outside the UK.

Aberdeen Asset Management will report full results tomorrow and despite the tough backdrop for asset managers, analysts expect figures to be strong, helped by flows into higher margin equity funds.

Revenues are expected to come in at £777.1m, up from £638.2m with pre-exceptional profits of £297m, up from £210.8m.

Deutsche Bank last week reiterated its “buy” rating on Aberdeen which it expects to benefit from higher management fee margins, scope to increase US distribution and the potential to be acquired.

Kesa Electricals will shed more light on its decision to sell the struggling Comet electricals chain for a token £2 in its half-year results on Wednesday.

It is expected to reveal Comet, which will be taken over by retail turnaround firm OpCapita, made a loss of £22.3m in the six months to 31 October, after like-for-like sales fell 18.6 per cent.

Alongside the impact of Comet, Kesa, which also owns Darty France and Dutch retailers Vanden Borre and BCC, is expected to show a slight fall in sales in its businesses outside the UK.

Rod Salmon, analyst at Numis Securities, forecast a pre-tax loss of £26.6m for the whole group.