Wednesday, October 14, 2020 10:12 AM EST
Stocks in the tourism sector suffered another setback in the stock market after Johnson & Johnson (JNJ) temporarily suspended trials on the coronavirus vaccine and Eli Lilly (LLY) stopped trials of its experimental antibody-based treatment against COVID-19.
The shares of the Meliá hotel group (OTC: SMIZF) plummeted around 6% on the Madrid Stock Exchange and have already accumulated losses close to 60% of their value so far in 2020.
The delicate situation that the group is experiencing due to the mobility restrictions that it has been caused by the coronavirus pandemic has led Deutsche Bank to lower its recommendation, from hold to sell.
Source: Admiral Markets MetaTrader 5. Meliá CFD daily chart. Data range: from June 6, 2019, to October 14, 2020. Prepared on October 14, 2020, at 12:10 p.m. Keep in mind that past returns do not guarantee future returns.
As we see in the graph, Meliá has not managed to recover from the general collapse at the end of February when the first mobility restrictions were established throughout Europe. The group, beyond the general crisis that it is going through in 2020, has not managed to be a profitable and stable value on the stock market. In the last five years it only closed 2017 positively.
Other stocks in the tourism sector that fell today on the stock market due to the delays in vaccines are:
- InterContinental Hotels Group (IHG) (-1.28%)
- French Accor (-0.40%)
In the US session:
- Hilton Worldwide Holdings posted (HLT) a 2.97% drop
- Marriott (MAR) International 2.45%.
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