Billions wiped off travel shares after Paris attacks, overall market steady

SRP Groupe SA

16/11/2015 14:58

* FTSEurofirst up 0.2 percent, France's CAC down 0.1 pct 
    * Travel, leisure stocks down 1.4 pct on Paris attacks 
    * Energy shares struggle to hold on to gains 
    * KBC rises on solid results, Sonova slumps 
 
 (Adds fresh prices, detail) 
    By Alistair Smout and Sudip Kar-Gupta 
    LONDON, Nov 16 (Reuters) - European shares were steady on 
Monday, supported by gains in the energy sector that helped 
offset a slump in travel stocks following Friday's attacks in 
Paris. 
    Energy shares outpaced the broader market, buoyed by the 
prospect of higher oil prices following French air strikes 
against Islamic State targets in Syria. 
    French shares slightly underperformed when markets reopened 
for the first time since the co-ordinated attacks by Islamist 
militants.  ID:nL8N13B1NP  
    Around 2.5 billion euros ($2.68 billion) were wiped off the 
STOXX 60 Travel & Leisure index  .SXTP  amid fears that the 
sector could be impacted by loss of consumer confidence.  
    Shares in French hotel group Accor  ACCP.PA  fell 5.2 
percent, Air France  AIRF.PA  fell 5.6 percent while shares in  
Eurotunnel  GETP.PA  and Aeroports de Paris  ADP.PA , the 
operator of Paris' Charles de Gaulle and Orly airports, were 
down 3.8 percent.     
    Luxury stocks were also under pressure. Hermes  HRMS.PA , 
LVMH  LVMH.PA  and Kering  PRTP.PA , which get a large part of 
their sales from foreign tourists in Paris, were all down more 
than 1 percent.         
    "Paris is one of the most important cities worldwide in 
terms of luxury spending and the timing is not good too -- a few 
weeks before Christmas, the most important period for 
retailers," said Gregoire Laverne, fund manager at Roche Brune 
Asset Management. 
    "Those attacks will definitely have a long-term negative 
impact on the tourism sector in France, and all sectors (which 
depend) on tourists, but it cannot be measured yet  although 
the market tends to forecast the worst case scenario." 
    Some highlighted France's Showroomprive.com  SRPG.PA  as an 
outperformer in the fashion sector, up 1.5 percent, with 
Internet-only retailers seen as more insulated from the drop in 
confidence. 
    "Companies that retail over the web could outperform," said 
Clairinvest fund manager Ion-Marc Valahu. 
    Outside the retail and travel sectors, European stock 
markets were broadly resilient, with the attacks seen as 
strengthening the case for the European Central Bank to provide 
further monetary stimulus when it meets next month. 
 ID:nL3N13A03D   
    The pan-European FTSEurofirst 300  .FTEU3  index edged up 
0.2 percent and France's CAC  .FCHI  was down 0.1 percent.     
     
    ENERGY SHARES FIRM 
    Energy stocks  .SXEP  were the leading sectoral gainers, 
rising 1.8 percent as crude oil prices edged up after France 
launched large-scale air strikes against Islamic State in Syria. 
 ID:nL3N13A0RM     
    Basic resources stocks  .SXPP  also firmed. 
    KBC  KBC.BR  rose more than 3 percent after the Belgian 
financial group posted a bigger-than-expected net profit, as a 
strong performance in its traditional banking and insurance 
businesses made up for a weaker showing of its dealing room. 
 ID:nL8N13B0EJ  
    Among outstanding losers, Sonova  SOON.VX  fell 7.7 percent 
as the hearing aid maker cut its sales and profit forecasts 
after weak cochlear implant sales, sluggish business with U.S. 
veterans and a squeeze on overseas earnings from the strong 
Swiss franc.  ID:nL8N13B18G  
         
    Today's European research round-up  RCH/EUROPE  
 
($1 = 0.9315 euros) 
 
 
($1 = 0.9332 euros) 
 
 (Additional reporting by Danilo Masoni in Milan; Editing by 
Catherine Evans) 
 ((danilo.masoni@thomsonreuters.com; +39-02-66129734; Reuters 
Messaging: danilo.masoni.thomsonreuters.com@reuters.net)) 
  
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