Home ›› 13 Feb 2022 ›› Stock
Returns from travel and leisure stocks fell much below the yield from a bank fixed deposit in 2021.
Stock investors received a lower-than-expected return from the travel and leisure sector hit hardest by the Covid-19 last year.
The travel and leisure sector gave a 4.74 per cent return in 2021, which is much lower than the bank fixed deposit interest (FDR) rate, according to Dhaka Stock Exchange.
During the period, most of the banks give an annual rate of return of up to 6 per cent in 2021,according to Bangladesh Bank. However, the one-year return from the benchmark DSEX index in 2021 increased more than 20 per cent to 6,756—higher than the annual rate of return from bank deposits.
At present, four companies in the travel and leisure sector are listed on the Dhaka Stock Exchange (DSE).
The pandemic brought the travel and leisure sector to a standstill both locally and worldwide, causing massive job and revenue losses.
The listed companies in the sector began to feel the pinch after the government imposed lockdowns and other corona virus-related curbs.
The financial reports showed the financial performance of the companies continued to deteriorate since the outbreak of the Covid-19 in 2020.
Investors got 2.46 per cent return in 2021, 2.53 per cent in 2020, and 3.81 per cent in 2019 against their investment in Unique Hotel and Resorts, the pioneer of Five Star hotel in the private sector of Bangladesh that owns “The Westin Dhaka”, according to the company’s financial reports.
Hotel Peninsula stocks gave a 4.76 per cent return in 2021 and 5.85 per cent in 2020.
“Corona restrictions hit our revenue, however, the hotel business started to recover the losses from early 2021 when the restrictions were relaxed,” said Azharul Mamun, the company secretary of the Sea Pearl Beach Resort and Spa.
Listed in 2019, Sea Pearl Beach Resort and Spa stocks gave 0.23 per cent return in 2021 and 0.13 per cent in 2020.
“Our business completely shut down during the pandemic,” said Nazmul Sadat Sakib, the company secretary of the state-owned Bangladesh Services Limited that owns Dhaka Sheraton Hotel.
