The following heading in English:
"Recently, the TUI stock experienced turbulent trading days on the Frankfurt Stock Exchange, which were particularly weighed down by geopolitical tensions in the Middle East. After a temporary rally in mid-March with positive fundamental outlooks, the paper of Germany's largest travel group recorded significant losses. On Tuesday, the stock closed with a decline of 7.06 percent at 6.69 euros, clearly falling below the psychologically important mark of 7 euros."
The Escalation Between Iran and Israel, in which Iran directly attacked Israel with Rockets and Drones, Stoked Fears of Further Destabilization of the Region and Impacted the Entire Tourism Sector, Including Losses for Lufthansa. Such Geopolitical Events Often Lead to Increased Caution Among Investors, Who View the Tourism Sector as Particularly Vulnerable to Such Risks.
Despite the recent decline in stock prices, the fundamental outlook for TUI is positive. A survey among tour operators indicates a strong summer season that may possibly reach the pre-coronavirus pandemic level. According to industry leaders such as Alltours, Bentour, and Schauinsland-Reisen, TUI could even surpass the booking numbers of 2019 in the fiscal year 2023/24, when 20 million travelers used TUI offers.
The corporation's revenue reached a new record in the fiscal year 2023 with 19 million paying vacationers. This reflects the recovery and the company's strong commitment in the tourism sector. Investors had recently placed great hopes in the company, which seems to be making a turnaround after years of crisis.
The technical chart picture of TUI stock has clouded over, however. The slide in price led to the breach of important technical levels, including the 50-day moving average and possibly soon the 200-day moving average as well, which further exacerbates the technical situation.
The further development of the stock will largely depend on how the geopolitical situation in the Middle East evolves and how much it influences the global travel market. Should the conflict further escalate, the risks for TUI and the entire tourism sector could continue to rise. Despite the positive fundamentals, the situation remains volatile, and investors should closely monitor geopolitical developments.
