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Chinese airports caught up in share sell-off, but Beijing traffic bounces back strongly

Analysis

Chinese shares slumped 6.3% on 18-Nov-08 on profit taking and as investors considered the weak outlook for the global economy. Chinese airport shares were not spared the sell-off (with the exception of Beijing Capital Airport), with Guangzhou, Shanghai and Xiamen airports falling 9.7%, 9.6% and 5.9%, respectively on the day.

Selected airports daily share price movements (% change): 18-Nov-08

But Beijing Capital Airport bucked the trend, with its shares rising 0.7%, as it unveiled much better than expected Oct-08 traffic (+24.6% year-on-year). The airport reported a 29% surge in domestic and 10.4% increase in international passenger numbers as security restrictions were eased. The airport forecasts a 10% lift in passenger numbers in 2009 after a very subdued 2008.

Beijing Capital International Airport passenger numbers and passenger numbers growth (% change year-on-year): Nov-07 to Oct-08

Freight demand has also bounced back in recent months.

Beijing Capital International Airport passenger numbers vs cargo volume growth (% change year-on-year): Nov-07 to Oct-08

Malaysia Airports also bucked the trend yesterday, rising 7.3% amid a broader market fall of 0.1%. Reasons for the sharp rise are not immediately apparent.

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