Media reports in Singapore have quoted analysts saying financial stocks exposed to the regional tourism sector will likely bear the brunt of the MERS (Middle East respiratory syndrome) outbreak that has shaken North-east Asian markets.
Travel company stocks in Singapore have already seen fall-offs. Singapore Airlines’ has reportedly lost 10.4 per cent since May 20, while Tigerair closed 6.35 per cent lower at 29.5 cents over the same period.
More than 50,000 tourists cancelled their trips to South Korea within a week of the first confirmed MERS case, OCBC Investment Research head Carmen Lee said.
Singapore’s Straits Times quoted Phillip Futures analyst Howie Lee saying airlines would be most affected. In the hospitality sector, companies like Genting Singapore may see further downside as MERS continues to spread.
"If MERS spreads into Greater China - which is already stirring the markets there now - the Chinese will cut down on travelling. Genting's integrated resort (in Singapore) is hugely dependent on Chinese visitors, so Mers will strain the counter even more," IG analyst Bernard Aw said in Straits Times.
The latest death toll in South Korea from the MERS outbreak was 19, with more new cases lodged.