Travel stocks may have bounced back from the ASX plunge a couple of days ago (prompted by Grexit fears) but a cursory review of the price history of popular companies shows that investor sentiment has turned negative for retail stocks as the Australian stock market starts a new financial year.
Flight Centre, which recently said its profit will be down by around 4%, has most definitely fallen out of favour and is today trading at $33.96, well off its year high of $48.20.
Meanwhile, online retailer Webjet’s shares have slid from a high of $4.15 in late March to $3.05 today – a fall of 26%.
This is pure sentiment – the company hasn’t said anything in months.
Major hotel stocks are still tracking well after impressive gains through the year.
For example, Mantra Group is trading at around $3.39, a buck short of its $4.39 high, but still almost double its $1.78 low.
Qantas is doing well, too, at $3.23 compared with a 12 month low of $1.19.
Clearly investors believe it has turned the corner.