Stock Watch

Global indices have risen as investors have gained some confidence in the containment and recovery process following the COVID-19 outbreak. However, uncertainty still prevails. The number of new cases and the fatality rate have generally slowed in Mainland China over the past few days; however, cases in South Korea have soared.

Shares in China Duty Free Group (CDFG) parent China International Travel Service have gone up in the period covered here (closing prices between 5 and 20 February). A particularly big leap was recorded between 18 and 20 February, with shares climbing from CNY80.20 to CNY85.80. That is still well below the CNY94.34 recorded on 10 January and the 2020 opening price of CNY90.05.

CDFG reopened its main duty free stores on Hainan Island, including the flagship CDF Mall in Sanya, at 11am on 20 February. As reported, the CDF Mall, the epicentre of Hainan’s offshore duty free industry, and one of the world’s most important duty free locations, had been closed since 27 January due to the COVID-19 crisis.

Shares in Hotel Shilla were also up slightly in the period tracked here (+2.1%) but have not been above KW100,000 mark since 22 January, having opened the year at KW118,000.

South Korea, home to the world’s biggest duty free market, is now also home to the most confirmed cases of COVID-19 after China and the Diamond Princess cruise ship following a surge in the infection rate over recent days. The country’s leading news agency, Yonhap, reported that 48 more cases had been reported on 21 February, bringing the total to 204.

Shares in Japan Airport Terminal Co. fell -7.8% in the current period, and are down -13% since the start of the year. Speculation is mounting about the impact of COVID-19 on the 2020 Olympic Games, which are scheduled to be held in Tokyo from 24 July.

Away from Asia, shares in Hudson Group recovered somewhat following a dramatic fall in the period covered by the previous edition of Stock Watch. Shares were up +13.5%, but remain -12.6% down since 1 January.

Parent company Dufry, the world’s largest travel retailer by sales, saw its stock price fall -4.5% this time for a year-to-date differential of -12.8%.

In early February, food & beverage company Autogrill reported a rise in consolidated revenues of +6.4% to almost €5 billion (US$5.49 million) for the year to 31 December 2019, driven by a strong airport performance. In airports, revenue grew by +12.3% (+8.1% at constant exchange rates), with all regions contributing. Like-for-like revenue growth was +4.6%, mainly driven by North America. Shares in the company were down slightly (-0.3%) in the current period.