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Airports of Thailand shares hit by Bangkok strife, but investors shrug off Mumbai attacks

Analysis

Airports of Thailand's shares fell 3.4% as Don Mueang Airport was also closed due to protest activity yesterday. Suvarnabhumi remains closed until at least Saturday, and thousands of passengers remain stranded in Bangkok.

The ongoing political unrest is expected to have a significant impact on the coming peak tourism season. The Thai tourism industry was already struggling under weaker international visitor arrivals due to the global economic downturn and Thai Airways' service cutbacks.

Selected airports daily share price movements (% change): 27-Nov-08

Meanwhile, European stock markets have mostly shrugged off the Mumbai terror attacks. Even shares in companies with a direct exposure to Indian aviation, Fraport (at Delhi Airport) and Zurich (at Bangalore), rose yesterday, by 6.7% and 8.0%, respectively.

Malaysia Airports, which has an exposure to Delhi and Hyderabad airports, rose 3%. Airports Company South Africa (ACSA) is the foreign airport operator most exposed to the Mumbai attacks through its stake in Mumbai International Airport Ltd. The South African company however is not listed.

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