Invest
Are there still opportunities in reopening trades?
As vaccination rates around the country rise and restrictions ease, investors continue to turn to the companies that are set to benefit the most, such as travel and hospitality stocks.
Are there still opportunities in reopening trades?
As vaccination rates around the country rise and restrictions ease, investors continue to turn to the companies that are set to benefit the most, such as travel and hospitality stocks.
However, Russel Chesler, head of investments and capital markets at VanEck, has issued a warning that some stocks may already reflect the expected gains in business.
“The reopening of the NSW economy and eventually Melbourne has already benefited the travel sector, with Flight Centre and Webjet, for example, up 24 per cent and 5 per cent, respectively, over the last month compared to a drop of around 2 per cent for the ASX 200,” Mr Chesler said.
Among the sectors set to benefit the most in the coming months is travel, with travel agents reaping the benefits of open borders and hotel groups enjoying an increase in reservations. VanEck noted that while some stocks in the sector have already rallied, gains could still be on the table.
VanEck also highlighted the education sector, which is set to benefit from a return of international students; the hospitality and events sector, which will be boosted by restaurant and venue reopenings; and the healthcare sector, which may see an increase in previously delayed elective surgeries and other treatments.
“Investors seeking to take advantage of life returning back to the NSW and Victorian economies will need to do their research and focus on quality stocks that can sustain the momentum over the medium to longer term,” said Mr Chesler.
International travel is set to resume in New South Wales next month once the state reaches the 80 per cent vaccination threshold, followed most likely by Victoria.
Prime Minister Scott Morrison has indicated he is in discussions with the NSW government on the potential to accelerate the restart of international travel to as early as 1 November.
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