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Sector movers: Carnival drags travel stocks lower
Tue, 22 May, 2012
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Sector movers: Carnival drags travel stocks lower
Mon, 16 Jan 2012, 15:43:00
A massive 16% fall for cruise operator <b>Carnival</b> saw the travel and leisure sector fall to the bottom of the pile on Monday.
 
 One of Carnival's ships, the Costa Concordia, grounded off the coast of Italy at the weekend, causing the deaths (so far) of six people as well as numerous injuries. Sixteen passengers are still missing, according to news reports. The firm, which is the parent company of Costa Cruises, said that the cost of not having the boat in service will be between $85m and $95m. 
 
 "If the industry already didn't face enough challenges (fuel price volatility, capacity absorption, and weakness in the European economy) this unfortunate event will reverberate on the group over the near-term," according to analysts at Credit Suisse.
 
 Sector peers <b>Air Partner</b>, <b>Travelzest</b> and <b>Flybe</b> fell in sympathy.
 
 Meanwhile, automobiles and parts stocks were the best performers today, tracking their European peers higher. UK stocks gained an average 2.29% in afternoon trading, while the STOXX Europe 600 Automobile and Parts index was rising 2.84%, after Goldman Sachs bolstered gains for car makers.
 
 The US broker maintained its conviction buy ratings on peers BMW and Fiat today, while also adding Daimler to the list. It also upgraded the ratings of Pirelli, Fiat Industrial and Renault.
 
 In London, sector heavyweight <b>GKN</b> led the risers.
 
 <b>Top performing sectors so far today</b>
 Automobiles & Parts 4,694.84 +2.29%
 Personal Goods 20,339.15 +1.73%
 Industrial Transportation 2,271.05 +1.51%
 Fixed Line Telecommunications 2,335.29 +1.31%
 Technology Hardware & Equipment 734.78 +1.04%
 
 <b>Bottom performing sectors so far today</b>
 Travel & Leisure 4,243.28 -1.96%
 Food & Drug Retailers 3,860.30 -1.02%
 Oil Equipment, Services & Distribution 23,666.63 -0.55%
 Electricity 7,914.86 -0.43%
 Industrial Metals & Mining 4,490.62 -0.36%
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