Yesterday Valamar Riveira and Arena Hospitality Group recorded a sharp share price increases of 9.87% and 5.93%, respectively.
Yesterday, most Croatian blue chips ended a trading day in green with CROBEX10 and CROBEXprime recording an increase of 1.67% and 3.44% respectively. Such a result could be attributed to a positive sentiment regarding Covid-19 not only on a regional level, but on a global level as well.
YTD Daily Share Price Change of RIVP (%)
The positive sentiment was particularly reflected on the share prices of Croatian tourism companies Valamar Riviera and Arena Hospitality Group, which recorded an increase of 9.87% and 5.93%, respectively. Note that the last time Valamar recorded such a high daily increase was on 13 March 2020 when the share recorded a 10.7% increase after plunging 14.2% the day before. At the current share price Valamar is traded at a trailing P/E of 14 and EV/EBITDA of 8.3, while Arena Hospitality Group is traded at a P/E of 8.9 and EV/EBITDA of 8.8.
YTD Daily Share Price Change of ARNT (%)
As a reminder, last week Croatia observed further relaxation of measures regarding Covid-19 restrictions, with many companies opening back for business. Besides that, Croatia has fully opened its boarders to all foreign tourist after more than a month of lockdown. It is worth noting that the foreigners arriving in Croatia will not need to go through a period of self-isolation upon the arrival.
In April, due to the lockdown, Croatia has witnessed extremely low figures when it comes to foreign arrivals. To put things into perspective, in April Croatia observed 2,349 arrivals compared to 2.87m in the same month last year. We are eager to see how will the relaxation of measures impact tourist arrivals in the following months.