Carnival shares slip lower as coronavirus fears grow
Shares in Carnival fell nearly seven per cent as fears over a global pandemic grew and hit travel and leisure stocks.
The company plunged 6.57 per cent, as at 4pm, in what has been a particularly turbulent day on the FTSE 100.
London’s blue-chip index fell 3.5 per cent to 7.143 points. The last FTSE 100 fall of three per cent or more came in October 2019, when Brexit turmoil wiped billions off stocks.
Carnival was one of a number of travel and leisure related stocks to fall on Monday following the rapid uptick in cases outside China.
Investors have been rattled by the rapid uptick in cases outside China as the potential for a pandemic increases.
Peel Hunt analysts Ivor Jones and Douglas Jack noted the spread of the coronavirus in Italy could further hurt stocks.
They added: “Carnival is already at a 52-week low and probably has the potential to go lower, Costa Cruises of Italy is its major European brand.”
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Earlier this month Carnival said the coronavirus outbreak would have an effect on its financial results.
In a statement the company said: “As a result of Coronavirus, the company believes the impact on its global bookings and cancelled voyages will have a material impact on its financial results which was not anticipated in the company’s previous 2020 earnings guidance.”
Shares in Carnival are down 10.7 per cent this month after being caught up in the general sell-off of travel stocks. But it has also had to contend with the outbreak of the coronavirus on one of its ships.
Earlier this month, more than 600 passengers were quarantined on the Diamond Princess cruise ship after reports of positive cases.
A British couple who documented their time on the cruise ship tested positive for the virus last week and are currently being treated in Japan.