Airline, financial/bank, exchange and tourism stocks may come under pressure in the wake of the terrorist attacks in Belgium, but the markets adjust quickly to tragic events, according to IG market strategist Bernard Aw.
“Economies and markets tend to adjust and desensitise to terrorism over time. The unfortunate reality is that terrorism has become more ‘commonplace’ in the minds of regular folk after 9/11. Certainly, tourism-related stocks such as airline and hotel counters would be adversely affected in the near term, until travellers adjust and get back to the norm. Asia may be more resilient today, where cautious trading should prevail,” Aw says.
Aw reckons that several industries are typically more vulnerable to terrorism activity. “The obvious industry being the tourism sector. Where public confidence in air travel is regularly hurt by terror attacks. Bank and Exchange stocks may also be susceptible to downward pressure. Investors may be concerned if terror activity will cripple the financial infrastructure, such as internet and telecommunications, or leading to a closure of the nation’s exchange,” he says.
At 10.10am, SIA was up 0.6%, DBS was up 0.4%, OCBC was up 0.1% and SGX was up 2.1%.
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“Economies and markets tend to adjust and desensitise to terrorism over time. The unfortunate reality is that terrorism has become more ‘commonplace’ in the minds of regular folk after 9/11. Certainly, tourism-related stocks such as airline and hotel counters would be adversely affected in the near term, until travellers adjust and get back to the norm. Asia may be more resilient today, where cautious trading should prevail,” Aw says.
Aw reckons that several industries are typically more vulnerable to terrorism activity. “The obvious industry being the tourism sector. Where public confidence in air travel is regularly hurt by terror attacks. Bank and Exchange stocks may also be susceptible to downward pressure. Investors may be concerned if terror activity will cripple the financial infrastructure, such as internet and telecommunications, or leading to a closure of the nation’s exchange,” he says.
At 10.10am, SIA was up 0.6%, DBS was up 0.4%, OCBC was up 0.1% and SGX was up 2.1%.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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