INTERNATIONAL. A year after the launch of The Moodie Reportfolio, when we invested a hypothetical US$10,000 in travel retail-related shares, the basket of stocks has fallen by -29.8% in value. The performance underlines the tough climate for share trading over the past six months, largely driven by the US sub-prime crisis.
The only two companies that have made (marginal) gains in the year are LVMH and Bahrain Duty Free. See the charts below for full details.
LVMH saw the total value of its shares (in Euros) rise by +6.8% in July compared to the previous month, and was the leading performer in the Reportfolio in July. The company recently announced a +5% rise in revenues to €7.8 billion in the first half of 2008.
The total value of shares (in US Dollars) in The Moodie Reportfolio decreased by -3.3% in July. The fall was not as exaggerated as in previous months, however, which could be a result of easing pressure on stocks as oil prices fall. As of 5 August 2008 oil prices were at US$118 a barrel, compared to a high of US$147 a month earlier.
At the beginning of August 2007 The Moodie Report invested a hypothetical US$10,000 – or local currency at prevailing exchange rates – in 13 travel retail-related stocks. Some are pure duty free/travel retail companies, some are parent or related groups. The resultant basket of stocks is The Moodie Reportfolio.
The stocks are:
– Autogrill (Aldeasa, Alpha, HMSHost, World Duty Free)
– Bahrain Duty Free Shops
– Dufry South America
– Hellenic DFS
– Japan Airport Terminal Co
– Jordanian Duty Free Shops
– Lagardère (Aelia; HDS Retail)
– Lotte Shopping Co
– LVMH (DFS Group)
– MISR Duty Free Shops (Egypt)
Each month our Research & Analysis Manager, Singapore-based Justin Lee, reports on the change in The Moodie Reportfolio and its individual components. He tracks our original investment and notes the outstanding performers for the month in both local and US currency and the year to date (the latter in US Dollar terms).
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