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Summary
- The travel and leisure stocks on Tuesday slumped on the news that people planning on non-essential trips would be fined £5,000.
- B90 Holdings, Cineworld Group Plc, and EasyJet Plc were among the top losers.
The travel and leisure stocks on Tuesday slumped after news surfaced that people planning non-essential trips would be fined £5,000 to stop the spread of Covid-19 pandemic.
B90 Holdings (LON:B90), Cineworld Group Plc (LON:CINE), and EasyJet Plc (LON:EZJ) were among the top losers in the sector.
Here are some of the biggest losers whose shares fell between 5 and 10 per cent on the news of new travel fine:
- Saga Plc (LON:SAGA)
The company, focused on catering to the needs of those above 50, fell 7.26 per cent and was trading at GBX 320 from its previous close of GBX 346. The FTSE All-Share index was down 0.41 per cent at 3,818.23 on 23 March at 11:13 GMT+1.
Since it offers cruise insurance, the fine on non-essential travel would mean that its travel insurance business would be impacted.
Also read: FTSE 100 Slides in Red Even as Unemployment Rate Improves To 5%
- Restaurant Group Plc (LON:RTN)
The shares of the Restaurant Group Plc fell 5.92 per cent and were trading at GBX 106.50 from the previous close of GBX 113.20. The FTSE All-Share index was down 0.36 per cent at 3,820.31 on 23 March at 11:22 GMT+1.
The UK’s lockdown norms are gradually easing, and a fine on non-essential travel would increase fears of fresh restrictions to contain the spread of new variants. This affected the company’s performance at bourses.
- SSP Group Plc (LON: SSPG)
The multinational contract food servicing company’s shares fell 5.88 per cent and were trading at GBX 320 from the previous close of GBX 340. The FTSE 250 index was down 0.36 per cent at 21,378.04 on 23 March at 11:17 GMT+1.
The shares of the company were impacted on fears that the new fine imposed is indicative of the fresh set of rules for containing the pandemic.
Also read: A Year of Recovery: Top 10 Gold Stocks on LSE
- Rotala Plc (LON:ROL)
The bus operations’ company’s shares were down 5.56 per cent and were trading at GBX 34 from the previous close of GBX 36. The FTSE AIM All-Share index was down 0.15 per cent at 1,201.21 on 23 March at 11:26 GMT+1. Fine on non-essential travel would impact the company’s revenues as it provides transport solutions.
- EasyJet Plc (LON: EZJ)
The British low-cost multinational airline company’s shares fell 4.40 per cent and were trading at GBX 899 from the previous close of GBX 941.20. The FTSE 250 index was down 0.33 per cent at 21,386.96 on 23 March at 11:30 GMT+1.
The company’s shares stumbled as curbing of non-essential travel would hit the revenues of the aviation and hospitality industries.
- Cineworld Group Plc (LON: CINE)
The London-based cinema chain’s shares fell 4.76 per cent and were trading at GBX 106 from the previous close of GBX 111.30. The FTSE 250 index was down 0.30 per cent at 21,391.02 on 23 March at 11:34 GMT+1.
The shares of the company fell because of the fear around new strains of the virus and the fine on non-essential travel.
- Carnival Plc (LON: CCL)
The stocks of the British-American cruise company fell 3.92 per cent and were trading at GBX 1,595 from the previous close of GBX 1,660. The FTSE 250 index was down 0.23 per cent at 21,406.38 on 23 March at 11:39 GMT+1.
Cruise businesses have been bleeding because of the travel restrictions, and another fine would further dent its prospects for the foreseeable future.
