U.S. military move benefit HK airline sector: Morgan Stanley

According to Morgan Stanley, the U.S. military movement against terrorist would benefit airline shares especially blue-chip airline stocks such as Cathay Pacific Airways Ltd. (0293). analysts Chin Y. Lim and Tim Bacchus said today blue-chip airline shares have fallen 20-30 percent since Sept. 11 when the terrorist attacks happened, leading to price/net asset value multiples that are below historical trading ranges. Some airlines in the U.S. and Europe could be at risk of bankruptcy if their governments fail to provide financial and legislative relief, they said. Furthermore, the China market is relatively insulated from the global crisis and should benefit from China entering the WTO, they added. China Southern Airlines Ltd. (1055) and China National Aviation Co. (1110) are their stock picks.

Related stock : (293)(1055)(1110)