TUI (ETR:TUI1) share price bounce back again. What you need to know. – Idaho Reporter

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TUI (ETR:TUI1) share price bounce back again. What you need to know.

Without any fundamentally new news, TUI stock price skyrocketed significantly on the first trading day of the trading week.Investors found hope for the summer business of the travel industry on Monday in the corona crisis. They were encouraged by statements from TUI boss Fritz Joussen,

Company boss Fritz Joussen had confirmed in the Rheinische Post on Saturday that vacation trips would soon start again: Just in time for the summer vacation, the first vacation pilots should head to “Palma de Mallorca”, the most famous airport for Germans. Austria, Greece, Cyprus, Croatia and Bulgaria are equally well prepared. And there are also talks with Turkey. From Joussen’s point of view there is no reason for a permanent lockdown and there will be a dynamic at the border openings.

The shares of other possible beneficiaries of vacation travel also followed this clearly upwards: the ordinary shares of the car rental company Sixt and the stocks from the airport operator Fraport for example, rose by 4.7 and 7.2 percent.

The shares of airlines and the aircraft industry also recovered on Monday, albeit at a different pace. That of Lufthansa belonged in the Dax with an increase of 3.2 percent also due to the prospect of an agreement on a state bailout package for the extended circle of favorites. airbus brought it to the MDax as the second best value after Fraport to an increase of 6.1 percent. For the titles of the travel booking portal Holidaycheck, which are not part of a large index from the Dax family, rose 1.6 percent.

Companies like Sixt or Fraport had broken their business base in the past three months because global travel traffic has virtually come to a standstill in the wake of the corona pandemic. Both stocks had plummeted by up to two thirds since February, when the virus spread in Europe. Since then, they have been on a recovery course that has been running since the beginning of the week. Sixt have now doubled again from the low, and Fraport has increased by half.

For some weeks now, the ongoing easing of the virus measures have given investors in the travel industry some hope. On Monday in Frankfurt trading, Tui shares were able to return via the highly regarded 50-day line for the first time since the outbreak of the crisis. Investors like to use it as an indicator of the medium-term trend of a share.

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