Market Report: Travel Stocks Soar As Government Relaxes Covid Rules

Airlines, hotels and other holiday stocks were boosted after the government relaxed rules for traveling abroad prior to the half-year break.

Transport Secretary Grant Shapps said that starting October 4, travelers vaccinated twice will undergo a pre-departure Covid-19 test before arriving in the United Kingdom from a country not on the government’s Red List. He said he wouldn’t have to take it.

He added that later in the month travelers could replace the PCR test with a cheaper lateral flow test.

Takeoff Permit: After October 4, travelers who have been vaccinated twice do not need to take the pre-departure Covid test before arriving in the United Kingdom from a Red List country.

The traffic light system has also been discontinued, replacing the green, amber, and red lists with a single red list, effectively creating “going” and “no trespassing” countries for travelers.

In addition, eight countries currently on the Red List, including tourist hotspots Turkey and the Maldives, will be removed next Wednesday.

British Airways owner IAG’s share price rose 4.9% (7.04p) to 149.5p, leading the FTSE 100 leaderboard amid expected surges in demand.

Stock Watch-Safe Stay

The hostel chain Safestay soared after revealing the potential for an acquisition approach.

The company, which owns about 20 hostels in 10 European countries, said it received a “very conditional approach” from potential unnamed buyers.

Safestay added that it has begun a review of its business as it seeks to repair the damage caused by the Covid-19 pandemic.

It plunged income and guest numbers in 2020. Even when the facility was open, the occupancy reached only 38 percent. The company’s share price rose 10%, or 2p to 22p.

Low-cost carrier Ryanair rose 1.7% (0.29 euros) to 16.92 euros, rival easyJet’s share price rose 3.9% (23.8p) to 630.4p, and Wizz Air 2.6% (128p). It rose to 5056p.

Other companies in the sector are riding an optimistic wave, with package travel group Tui rising 6% (17.1p) to 302.7p and on-the-beach group rising 8.5% (27.5p) to 350p. became.

Holiday Inn and Crowne Plaza-Owner IHG also won, rising from 2pc (90p) to 4650p. Meanwhile, Rolls-Royce, which manufactures engines for passenger aircraft, rose 1.8% (1.94p) to 111p.

WH Smith, a newspaper store with multiple locations at airports and train stations, also surged 1.7pc (27p) to 1651p, and SSP, the owner of stores such as Upper Crust and Ritaza, which are often seen at airports and train stations, is 4.5. Increased by%. Or 11.4p to 266.4p.

The FTSE 100 fell 0.9pc (63.84 points) to a six-week low of 6963.64, and things didn’t look so rosy in the wider market.

The midcap FTSE 250, on the other hand, fell early, but managed to recover to 0.1%, or 26.1 points, to 23658.94.

The surge in bond yields may have triggered sales as gilt 5-year bonds reached their highest levels since March 2020.

As iron ore prices continued to fall, good miners also focused on the FTSE 100. Anglo American fell the largest on the FTSE 100, down 8.1% (227.5p) to 2591p, BHP Group down 4.8% (94.4p) to 1873.8p, and Rio Tinto down 3.6% (180.5p). bottom. , Up to 4829.5p.

Prices of iron ore, the main raw material for steelmaking, plummeted to its 11-month low on Thursday amid concerns about a decline in steel production from China.

UBS analysts who downgraded Anglo American while lowering target prices for both BHP and Rio Tinto did not solve the problem.

Elsewhere, Virgin Wines investors toasted a new partnership with online greeting card group Moonpig, raising stock prices 2.7% (5.5p) to 210p.

Under this agreement, Virgin will launch 32 new wines, some of which will be exclusively available on Moonpig’s website as part of Moonpig’s gift offerings.

Moonpig rises 0.8% (3p) to 380p.

Accsys Technologies, a wood building materials manufacturer, showed “strong sales and revenue growth” in the five months to the end of August, supported by rising demand and rising prices, but remained flat at 155p.

Nextenergy, a solar power investor, has risen from 1.5% (1.5p) to 100p after announcing a joint venture with UK’s leading battery specialist Eelpower, at a glorious spot to develop a power storage project. bottom.

The best banks were boosted by an upgrade from Barclays, HSBC rose 1.9% (7.15p) at 376.05p and Standard Chartered Bank rose 0.2% (0.7p) to 442p.

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Market Report: Travel Stocks Soar As Government Relaxes Covid Rules

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