Swine flu fears infect the stock markets

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "The travel and pharmaceutical sectors were most affected as the economic impact of the latest flu outbreak hit the stock markets. British Airways (BA) and GlaxoSmithKiline (GSK) entered our top ten tables this week as customers traded heavily on the news of the spread of the virus. A significant drop in the share prices of impacted companies may have driven this week's trading activity, with customers looking for opportunities to profit.

"Accounting for one in every 15 buys (excluding financial service trades) BA may have flown onto our bargain-hungry customer's radar screens after it's share priced suffered earlier this week. The airline giant, who has so far declined to cancel its flights to Mexico, took ninth place in the top ten buys. The swine flu outbreak is the latest blow for the UK-based carrier after heavy snowfall in February cost the firm £20m whilst the recession left premium traffic volume down 13% and non-premium traffic volume down 6% during March. The firm expects to announce a full year operating loss of around £150m before severance costs of £75m.

"Meanwhile GSK's share price was looking healthy earlier this week after it emerged the drug giant is one of only two pharmaceuticals able to supply approved treatment for influenza. Governments have been stockpiling Glaxo's Relenza, which is effective in the treatment of the H1N1 virus, or swine flu as it's more commonly known.

"Demand for Relenza may offset a recent drop in profits for GSK, which accounted for a quarter of all top ten buys outside of financial services trades. Posting first quarter results earlier this month, the US drug maker admitted cheaper generic drugs, despite a 19% rise in sales, had hampered profits.

"Finally, oil giant BP moved up the sell tables from ninth place last week to fifth place this week. Europe's second largest oil company by market value announced a 62% slide in first quarter profits on Tuesday after being hit by lower oil and gas prices as well as a drop in demand.

"Last year a barrel of oil almost reached $150 whereas current prices are flitting at around $50 a barrel. Still reeling from a recent shareholder revolt on 2008's pay plan, BP tried to woo shareholders with the reassurance that their dividends are safe."