The U.K.’s top shares unexpectedly plummeted late last week which was led primarily by airlines as investors take their bets on a period of consolidation for the FTSE 100 after it arrived at a 14-year high earlier in its trading day. Profit-taking persist to continue in terms of shares by British Airways owner EasyJet and IAG in which both airline companies jumped at an estimated 40 % in the last year in which investors have already been cashing in the gains.

According to several traders, elevated oil price was in part the culprit for the diminishing returns with Brent crude nearing two and a half week high above $110 a barrel. RBC eased its target price for EasyJet to 1,750 from its previous level of 1,800p. The difficulties enumerated according to EasyJet were the forecasted behaviour of the approaching summer when people’s holiday dates might possibly be based more on the upcoming FIFA World Cup competition to be held in Brazil.

EasyJet led market further down, 6.7 % closely followed by IAG which was 6 % weaker. The blue-chip FTSE 100 index concluded 37.6 points at 6,840 points and earlier in the session it climbed back up reaching a peak of 6,894.88 which was last seen over a decade ago when it set a record high of 6,950.6 points. The pullback that was seen in airlines emphasised the growing concerns regarding the extensive outlook for share prices. Moreover, condescending valuations are preventing investors from placing more money to work on equities.

The FTSE 100 is being traded on a 12-month forward price to earnings ratio of 13.7 times as compared to its 10 year average of 11.7 times. presently it is at a 14-year high and analysts don’t really regard it as something that requires a cause for concern. Also, experts likewise reckon that the U.K. benchmark will be traded at approximately within its current level until at least within mid-year which will enable earnings to catch up following what was once proven a complacent corporate result season.

With a total 84 % of the reporting season concluded, 50 % of Stoxx Europe 600 companies and firms have missed out on major analysts forecast. among mid-caps, Carphone Warehouse and Dixons Retail discarded 10.3 % and 8.1 % correspondingly as investors took the perspective that it would take more than the allotted time for their £3.8bn all-share merger to provide for until the very bottom line. The advantage to derive from this type of combination is a profitable margin increase, not from higher income but from a diminution of expenditures and costs.