SkyCity share price drops amid Coronavirus crisis

SkyCity Entertainment’s share price free-falls 22.5% due to Coronavirus fears.

New Zealand.- SkyCity Entertainment’s share price fell from its one year peak of $4.13 on January 15 to close at $3.20 on Friday, a significant fall of 22.5%.

New Zealand and international stock markets are in trouble as fears over the ongoing impact of the Coronavirus outbreak impacts the gaming and hospitality sectors.

The NZ market has fallen 3.6 percent in the last month, a smaller dip when compared to other markets around the world.

According to a table supplied by broker Craigs Investment Partners, the MSCI World Index has fallen 9.8 percent in the last month, with the Dow Jones down 11.5 percent and the Hang Seng index down 6.5 percent.

Air New Zealand’s share price is down 20.8 percent due to the reduction of flights to several Asian routes including Korea, Taiwan, and Singapore, and the cancellation of flights to China.

SkyCity was starting to feel the impact of the Coronavirus crisis, when it announced its December results last month. This was in addition to other factors negatively impacting its international business, a market segment vital to its overall success.

The company said then it was reducing its expected turnover in IB for the year from a forecast NZ$14 billion ($8.5 billion) to NZ$10 billion ($6.1 billion) equating to a $25 million drop in EBITDA.

SkyCity’s share price is down 15.8 percent from the same date a year ago and its shares opened this morning at $3.20 unchanged from Friday’s close.