The aviation industry’s recovery from the devastating coronavirus pandemic is certain to be long and slow. But you wouldn’t think so if you based your view on the shares of Turkey’s flag carrier.
Turkish Airlines has rallied by more than 60% in Istanbul trading from its lows in March, outperforming the 15 emerging-market airline stocks included in the MSCI EM Airlines Index. Shares in local low-cost rival Pegasus Airlines, which doesn’t feature in the MSCI gauge, have more than doubled.
HSBC Holdings Plc analysts in April described the gains in the Turkish aviation companies’ shares as “detached from fundamentals.” Others partly attribute the jump in Turkish Airlines to it being a laggard in 2019, when the stock dropped 10%. Another factor cited is a yearning among local investors for returns, given increasingly unattractive rates on their bank deposit accounts.
No comments:
Post a Comment