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

SRP Groupe SA

16/11/2015 17:34

* FTSEurofirst up 0.2 percent, France's CAC down 0.1 pct 
    * Travel, leisure stocks down 1.3 pct on Paris attacks 
    * Energy shares struggle to hold on to gains 
    * KBC rises on solid results, Sonova slumps 
 
 (Adds closing prices) 
    By Alistair Smout and Sudip Kar-Gupta 
    LONDON, Nov 16 (Reuters) - European shares held steady on 
Monday, supported by gains in the energy sector that helped 
offset a slump in travel stocks following Friday's militant 
attacks in Paris. 
    Energy shares outpaced the broader market, buoyed by the 
prospect of higher oil prices following stepped-up French air 
strikes on Islamic State targets in Syria. 
    French shares slightly underperformed when markets reopened 
for the first time since the coordinated suicide bombings and 
shootings by Islamist militants that killed 129 people. 
 ID:nL8N13B1NP  
    Around 2.3 billion euros ($2.46 billion) were wiped off the 
STOXX 60 Travel & Leisure index  .SXTP  amid fears that the 
sector could be harmed by a loss of consumer confidence.  
    Shares in French hotel group Accor  ACCP.PA  fell 4.7 
percent, Air France  AIRF.PA  fell 5.7 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 over 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 down 0.7-1.4 
percent.         
    "Paris is one of the most important cities worldwide in 
terms of luxury spending and the timing (of the attacks) 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 0.8 percent. 
Internet-only retailers are 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 to 1,460.76 points, with France's CAC  .FCHI  down 
0.1 percent.     
     
    ENERGY SHARES FIRM 
    Energy stocks  .SXEP  were the leading sectoral gainers, 
rising 1 percent. Stronger early gains were made as crude oil 
prices edged up after France carried out large-scale air strikes 
on Islamic State in Syria.  ID:nL3N13A0RM   
    However, the sector remained positive even as oil prices 
turned negative, with some traders saying there was value in a 
sector which is down around 20 percent since April. 
    KBC  KBC.BR  rose 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 fallers, Sonova  SOON.VX  dropped 7.8 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  
    ($1 = 0.9344 euros) 
         
    Today's European research round-up  RCH/EUROPE  
 
 
 (Additional reporting by Danilo Masoni in Milan; Editing by 
Mark Heinrich) 
 ((danilo.masoni@thomsonreuters.com; +39-02-66129734; Reuters 
Messaging: danilo.masoni.thomsonreuters.com@reuters.net)) 
  
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