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Why are Flight Centre and Metcash plunging?

May 12, 2016 | Team Kalkine

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Why are Flight Centre and Metcash plunging?

Flight Centre Travel Group

FLT Details

Rising competition: Flight Centre Travel Group Ltd (ASX: FLT) experienced a 3.1% plunge on May 11, 2016 trading session even though there is no specific update from the firm. On the other hand, the group’s rising competition from Corporate Travel Management Ltd (ASX: CTD), who is entering into the giant travel market might have hurt the stock. Moreover, Australian Bureau of Statistics released statistics indicating that visitor numbers to normally popular countries like Italy, Greece and Turkey have declined between 12% and 35% in the first three months of 2016 led partly by the AUD falling against the Euro. The slowing outbound travel seems to have an impact.
Recommendation: We suggest investors to "HOLD" the stock at current levels of $38.82

Metcash Limited

MTS Details

Potential bid for WOW home improvement business: Metcash Limited (ASX: MTS) stock dipped 2.5% on May 11, 2016 trading session even though there is no specific update. However, there is still a speculation of MTS making a bid for Woolworths Limited’s (ASX: WOW) Masters Home Improvement business.
Recommendation: Trading at a modest dividend yield, we recommend a "HOLD" rating for the stock at current levels of $1.74

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