The Corporate Travel Management Ltd (ASX: CTD) share price seems an unlikely candidate to hit a new 52-week high this week. Shares in the Aussie travel group closed 3.1% higher on Monday at $24.44 per share after hitting new heights throughout the day.
That’s despite ongoing COVID-19 restrictions across Victoria and New South Wales. So, how can shares in an Aussie travel agency be surging despite widespread lockdowns and an almost complete lack of travel?
What’s happening with the Corporate Travel share price?
The key here is to understand that markets are inherently forward-looking. For instance, the Corporate Travel share price fell 75% in the space of two months in the 2020 bear market.
That’s not to say that Corporate Travel was immediately impacted to that extent. For instance, as limited domestic travel returned in 2020, Corporate Travel shares climbed but not with the same immediacy.
However, investors were pricing in the impacts of COVID-19 on future cash flows. This means that while the two most populous states remain in lockdown, the Corporate Travel share price can still keep climbing.
The big news on Monday was the release of the full opening-up roadmap for New South Wales. Premier Gladys Berejiklian is eyeing 1 December to re-open the state and boost travel.
That’s good news for Corporate Travel and its near-term prospects. The Corporate Travel share price jumped higher as a result and hit a new 52-week high – all while much of Australia remains in strict lockdown.
Corporate Travel wasn’t only the ASX travel share to see strong gains in Monday’s session. Qantas Airways Ltd (ASX: QAN) shares hit a new 52-week high and closed 2.8% higher while Webjet Limited (ASX: WEB) finished the day up 5.2% – just shy of its own annual high.
Investors will be hoping for a strong rebound as Australia looks to re-open for the Christmas/New Year period.