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Brexit fallout: RBS and Barclays shares suspended from trading as Northern Ireland company prices fall

By John Mulgrew and PA

Published 27/06/2016

Stock markets took another tumble yesterday
Stock markets took another tumble yesterday

Trading in Royal Bank of Scotland - which owns Ulster Bank - and Barclays were temporarily suspended this morning following huge losses post Brexit vote.

The Brexit decision has dealt a hammer blow to heavyweight financial stocks, with some shares being temporarily suspended as the losses stack up.

The FTSE 100 was off 76.7 points to 6061.7, as Royal Bank of Scotland and Barclays fell more than 8% - down 14% and 11% respectively - causing trading in these shares to be halted for five minutes as automatic circuit breakers spring into action.

And Northern Ireland's own listed companies are continuing to suffer the ill-effects of a Leave vote.

Belfast tech firm Kainos saw its share price fall 6.7% on Monday morning, following a 10% drop on Friday.

However, Newry firm First Derivatives saw prices rise marginally, following a 7 point drop last week.

And Wireless Group saw its share price fall by 2.6% on Monday.

The FTSE 250 was also nursing hefty losses, down 3.7% to 15,487.7 points, as Britain's vote to the leave European Union continued to pound the markets.

Sterling, which continued its negative slide overnight, staged a mini rally after Chancellor George Osborne said the UK economy is "about as strong as it could be to confront the challenge our country now faces", adding Britain remains "open for business".

However, it was still down 2.9% at $1.327

EasyJet shares fell 19% after the firm said it will take a £28m hit following two months of turbulence and warned that Brexit would have a negative impact on the airline.

Share fell from 1313p to 1061p as it flagged strikes in France in May and June and severe weather and congestion issues at Gatwick leading to more than a thousand cancellations, with the EgyptAir tragedy also denting demand.

The budget airline said: "The operating environment for all European airlines in May and June has been extremely challenging.

"These incidents, together with the EgyptAir tragedy, resulted in some drop off in consumer demand leading to lower yield and have impacted third quarter profit before tax by approximately £28 million and have had a negative impact on third quarter revenue per seat."

On Brexit, easyJet said that it anticipates economic and consumer uncertainty this summer and, as a result, revenue in the second half will be down by "at least a mid-single digit percentage".

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