Travel stocks tumble in wake of Brussels attacks

Travel stocks tumbled in the wake of yesterday’s attacks on Brussels, prompting a second day of declines in European shares.

Markets fell following explosions in Brussels Airport and a metro rail station that caused death and serious injuries.

Travel companies, including Ireland’s Ryanair, were hardest hit, although most pared back their losses later in the day.

Dublin

Ryanair shares closed 2.19 per cent down at €13.395 as investors sold airlines heavily around Europe.

The Irish low-cost carrier slid more than 4 per cent earlier in the day as news of the attacks on the Belgian capital first broke. It was quoted at €13.095 at one point.

However, it began to recover ground from mid-morning. More than 3.8 million of its shares changed hands in trade in Dublin on Tuesday.

Drinks group C&C added 3.16 per cent to close at €3.92. Traders noted that the cider maker's price had drifted below €3.80 in recent days and suggested investors saw value in the stock at that level.

Real estate investment trust, Hibernia Reit, continued a recent good run, adding 1.5 per cent to close at €1.35. The property company fell more than 1.4 per cent in the morning.

Insulation and building materials specialist, Kingspan, added 1.46 per cent to close at €22.32. In a related sector, index heavyweight CRH added 0.39 per cent to €24.765.

London

Irish housebuilder, Cairn Homes, which is raising €175 million through a share placing, shed 3.99 per cent to close at €1.14 (quoted in euros).

Aer Lingus parent, International Consolidated Airlines Group (IAG) ended the day 1.52 per cent down at 549.5 pence sterling after falling close to 530 pence earlier.

The FTSE 350 travel and leisure sector fell 0.7 per cent overall, but the blue chip FTSE 100 ticked up slightly.

Thomas Cook Group lost 4.5 percent after saying 2016 summer bookings have been lower than last year.

Sports Direct International tumbled 11 per cent after the London Times cited founder Mike Ashley as saying the retailer can't match last year's profit.

Imagination Technologies Group gained 6.1 per cent.The British chipmaker surged 22 per cent after a report that Apple is in talks to buy it. It pared advances after the iPhone maker said it had "some discussions" with the company, but doesn't plan to bid now.

Chemicals companies Johnson Matthey and Shire were the top risers, both gaining over 2.5 per cent as investors took shelter in defensive stocks.

Europe

Groupe Eurotunnel, which operates rail tunnels between England and France, slid 3.8 per cent. Airport companies Aeroports de Paris and Fraport Frankfurt Airport Services Worldwide declined 2.7 per cent or more.

Assicurazioni Generali and Axa led declines among European insurers, down at least 2.3 per cent. Swedish firm Securitas, whose services include airport security, rose 3.7 per cent. The VStoxx Index of volatility expectations in euro-area shares was up 1 per cent. The Stoxx 600 hasn't posted back-to-back gains in more than a week, a sign that the rally may be running out of steam.

Before that, the gauge rebounded as much as 14 per cent since a February 11th low, helped by optimism over central-bank policies. Partners Group Holding jumped 7.1 per cent after its sales and earnings exceeded estimates.

New York

US stock indeces were little changed as investors shied away from risk following the attacks. A rise in shares of Apple and healthcare shares helped support the market. Cruise operators Carnival Corp was down 2.1 percent and Royal Caribbean dipped 2.9 per cent, while travel-website operator Expedia was off 1.8 per cent at $108.92. Online travel booker Priceline was one of the biggest weights on the S&P 500.

– additional reporting Bloomberg