Cruise ship sinks in Italy, passenger line companies might see some increased trading volumes on Monday

A luxury cruise liner capsized off the Italian coast this weekend. Costa Cruises’ Costa Concordia hit a reef and rapidly tipped over with over 4000 people on board. Fortunately majority of people were rescued; but nonetheless three people have already been confirmed dead with 39 still missing. Costa Concordia was built by Fincantieri, Italian publicly owned shipbuilding giant. Costa Cruises belongs to Carnival Corporation & plc, which is the world's largest cruise ship operator.

According to an Associated Press report, the industry is unlikely to be severely affected in the long-term. Different views have also been expressed. When M/S Estonia sunk near Utö island, Finland in 1993, demand for cruises saw a short-lived dip. The industry responded with more stringent safety regulations and increased personnel training. Nordic region’s cruise line and passenger ferry operators such as Royal Caribbean (OSE: RCL ), Viking Line (OMX: VIK1V) and Hurtigruten (OSE: HRG) may see some impact on Monday. The region’s several shipbuilding companies could also be slightly affected.