Icelandair stocks shake in quake scare By Jón Hákon Halldórsson 20. ágúst 2014 13:15 Icelandair stocks have dropped sharply since Monday morning, from 18.25 a share down to 17.7. Vísir/Pjetur Icelandair stocks have dropped sharply since Monday morning, from 18.25 a share down to 17.7. Market analysts agree that the situation at Bárðarbunga is a large factor. "I think this is someone overreacting, like people are focusing too much on the possible short-term expenditures if flights would be cancelled due to an eruption and such. But in the long-term this has every possibility to be very positive to not just Icelandair, but to tourism in Iceland as a whole. It's like people are ignoring the fact that the Eyjafjallajökull eruption 3 years ago seemed to cause a boom in tourism that's still being felt to this day," says Jóhann Viðar Ívarsson, stock market analyst at IFS. Jóhann believes that it is the smaller investors that are selling their Icelandair stocks now. The impact would be more noticeable if larger investors had been selling their stocks, and it is a known fact that smaller investors are more inclined to react harshly to market-affecting situations than the larger investors. Sveinn Þórarinsson, market researcher at Landsbankinn, says that this sharp dive in Icelandair stocks comes as a surprise to him. He states that no predictions can be made about what effects an eruption may have upon Icelandair, but people are mindful of history and past experiences. "In reality we have nothing to go on. No one knows if or when an eruption will take place, how big it will be, ash density and drift or even how the weather will affect things. But people seem to be pricing Icelandair as if an eruption is about to take place," he adds. Stefán Broddi Guðjónsson, market analyst at Arion Bank, adds that people tend to err on the side of caution, even though the eruptions from Eyjafjallajökull and from Grímsvötn had a positive economic effect. Icelandair released a statement right after the Eyjafjallajökull eruption where they announced that the 2011 eruption had cost them 1.5 billion kronur. Stefán Broddi adds that the discussion about a possible major eruption on Iceland doesn't seem to be affecting stocks in European airlines, despite the eruption being covered in the world media. "The focus there is on the price of oil and international politics, they don't seem to believe that another eruption on Eyjafjallajökull's scale may be about to take place."An Icelandic version can be found here. News in English Tengdar fréttir Earthquake swarm by Bárðarbunga volcano At about 3 a.m. this morning (16 August), an earthquake swarm began by Bárðarbunga volcano in NW Vatnajökull ice cap. 16. ágúst 2014 10:00 Current situation not comparable to Eyjafjallajökull eruption Ongoing magma movement in Bárðarbunga for the past days have raised questions of possible flight disruptions between Iceland and Europe. 19. ágúst 2014 16:15 Bardarbunga earthquake reclassified as magnitude 4.5 Seismologists at the Icelandic Meteorological Office (IMO) have reclassified the earthquake close to the Bardarbunga volcano last night. 18. ágúst 2014 22:49 Mapped the Bárðarbunga quakes in a 3D model A 24-year old employee of CCP Games has set up a website that shows the seismic activity at Bárðarbunga in a 3D perspective. 19. ágúst 2014 22:45 Activity in Bárðarbunga volcano Over the last seven years seismic activity has been gradually increasing in Bardarbunga and the fissure swarm north of the volcano. 16. ágúst 2014 10:00 2800 earthquakes in three days Of these around 950 have occured since midnight today. Several of these events were larger than magnitude 3. 19. ágúst 2014 00:17 "There is full reason to expect an eruption" The seismic activity in Bardarbunga on the Vatnajokull glacier is very powerful and therefore full reason to expect a volcanic eruption according to a specialist at The Icelandic Meteorological Office. A live webcam has been placed in the vicinity of Bardarbunga. 18. ágúst 2014 20:58 Mest lesið Vaktin: Bílaplanið þakið hrauni Innlent Sigmundur hafi viljað í kennslustund með nemendum Innlent Bættu krakkpípu við styttu Nínu Sæmundsson í Los Angeles Erlent Kosningavaktin: Íslendingar ganga að kjörborðinu Innlent Gætu kosið strategískt þegar svo margir flokkar eru á mörkunum Innlent Telur Bláa lónið öruggt vegna varnargarðanna Innlent Endalok goshrinunnar teygist inn á mitt næsta ár Innlent „Þetta var bara besta stund kosningabaráttunnar til þessa“ Innlent Funda áfram hjá sáttasemjara á morgun Innlent „Fólki er frekar misboðið“ Innlent
Icelandair stocks have dropped sharply since Monday morning, from 18.25 a share down to 17.7. Market analysts agree that the situation at Bárðarbunga is a large factor. "I think this is someone overreacting, like people are focusing too much on the possible short-term expenditures if flights would be cancelled due to an eruption and such. But in the long-term this has every possibility to be very positive to not just Icelandair, but to tourism in Iceland as a whole. It's like people are ignoring the fact that the Eyjafjallajökull eruption 3 years ago seemed to cause a boom in tourism that's still being felt to this day," says Jóhann Viðar Ívarsson, stock market analyst at IFS. Jóhann believes that it is the smaller investors that are selling their Icelandair stocks now. The impact would be more noticeable if larger investors had been selling their stocks, and it is a known fact that smaller investors are more inclined to react harshly to market-affecting situations than the larger investors. Sveinn Þórarinsson, market researcher at Landsbankinn, says that this sharp dive in Icelandair stocks comes as a surprise to him. He states that no predictions can be made about what effects an eruption may have upon Icelandair, but people are mindful of history and past experiences. "In reality we have nothing to go on. No one knows if or when an eruption will take place, how big it will be, ash density and drift or even how the weather will affect things. But people seem to be pricing Icelandair as if an eruption is about to take place," he adds. Stefán Broddi Guðjónsson, market analyst at Arion Bank, adds that people tend to err on the side of caution, even though the eruptions from Eyjafjallajökull and from Grímsvötn had a positive economic effect. Icelandair released a statement right after the Eyjafjallajökull eruption where they announced that the 2011 eruption had cost them 1.5 billion kronur. Stefán Broddi adds that the discussion about a possible major eruption on Iceland doesn't seem to be affecting stocks in European airlines, despite the eruption being covered in the world media. "The focus there is on the price of oil and international politics, they don't seem to believe that another eruption on Eyjafjallajökull's scale may be about to take place."An Icelandic version can be found here.
News in English Tengdar fréttir Earthquake swarm by Bárðarbunga volcano At about 3 a.m. this morning (16 August), an earthquake swarm began by Bárðarbunga volcano in NW Vatnajökull ice cap. 16. ágúst 2014 10:00 Current situation not comparable to Eyjafjallajökull eruption Ongoing magma movement in Bárðarbunga for the past days have raised questions of possible flight disruptions between Iceland and Europe. 19. ágúst 2014 16:15 Bardarbunga earthquake reclassified as magnitude 4.5 Seismologists at the Icelandic Meteorological Office (IMO) have reclassified the earthquake close to the Bardarbunga volcano last night. 18. ágúst 2014 22:49 Mapped the Bárðarbunga quakes in a 3D model A 24-year old employee of CCP Games has set up a website that shows the seismic activity at Bárðarbunga in a 3D perspective. 19. ágúst 2014 22:45 Activity in Bárðarbunga volcano Over the last seven years seismic activity has been gradually increasing in Bardarbunga and the fissure swarm north of the volcano. 16. ágúst 2014 10:00 2800 earthquakes in three days Of these around 950 have occured since midnight today. Several of these events were larger than magnitude 3. 19. ágúst 2014 00:17 "There is full reason to expect an eruption" The seismic activity in Bardarbunga on the Vatnajokull glacier is very powerful and therefore full reason to expect a volcanic eruption according to a specialist at The Icelandic Meteorological Office. A live webcam has been placed in the vicinity of Bardarbunga. 18. ágúst 2014 20:58 Mest lesið Vaktin: Bílaplanið þakið hrauni Innlent Sigmundur hafi viljað í kennslustund með nemendum Innlent Bættu krakkpípu við styttu Nínu Sæmundsson í Los Angeles Erlent Kosningavaktin: Íslendingar ganga að kjörborðinu Innlent Gætu kosið strategískt þegar svo margir flokkar eru á mörkunum Innlent Telur Bláa lónið öruggt vegna varnargarðanna Innlent Endalok goshrinunnar teygist inn á mitt næsta ár Innlent „Þetta var bara besta stund kosningabaráttunnar til þessa“ Innlent Funda áfram hjá sáttasemjara á morgun Innlent „Fólki er frekar misboðið“ Innlent
Earthquake swarm by Bárðarbunga volcano At about 3 a.m. this morning (16 August), an earthquake swarm began by Bárðarbunga volcano in NW Vatnajökull ice cap. 16. ágúst 2014 10:00
Current situation not comparable to Eyjafjallajökull eruption Ongoing magma movement in Bárðarbunga for the past days have raised questions of possible flight disruptions between Iceland and Europe. 19. ágúst 2014 16:15
Bardarbunga earthquake reclassified as magnitude 4.5 Seismologists at the Icelandic Meteorological Office (IMO) have reclassified the earthquake close to the Bardarbunga volcano last night. 18. ágúst 2014 22:49
Mapped the Bárðarbunga quakes in a 3D model A 24-year old employee of CCP Games has set up a website that shows the seismic activity at Bárðarbunga in a 3D perspective. 19. ágúst 2014 22:45
Activity in Bárðarbunga volcano Over the last seven years seismic activity has been gradually increasing in Bardarbunga and the fissure swarm north of the volcano. 16. ágúst 2014 10:00
2800 earthquakes in three days Of these around 950 have occured since midnight today. Several of these events were larger than magnitude 3. 19. ágúst 2014 00:17
"There is full reason to expect an eruption" The seismic activity in Bardarbunga on the Vatnajokull glacier is very powerful and therefore full reason to expect a volcanic eruption according to a specialist at The Icelandic Meteorological Office. A live webcam has been placed in the vicinity of Bardarbunga. 18. ágúst 2014 20:58