New York - AFP
Shares of cruise ship operator Carnival dropped sharply Tuesday after one of the company\'s vessels ran aground and sank off the Italian coast, leaving at least 11 dead. The Nasdaq-traded shares fell 13.9 percent to $29.52 at about midday (1700 GMT) in the first trading session since the 114,500 ton Costa Concordia, carrying 4,200 people, struck rocks off Italy\'s western coast and sank onto its starboard side in shallow water. Carnival, which controls the vessel through Genoa-based subsidiary Costa Crociere or Costa Cruises, said the loss could have an immediate impact of between $85 and $95 million on its accounts. JPMorgan analysts downgraded the company\'s stocks after the accident. Jon Ogg of 24/7 Wall St. said the steepness of the selloff was also tied to the current overall weakness in the cruise industry. \"It sounds like too much of a drop on the surface, but this comes at a time when the European business is rocky and at a time when promotions are high,\" he said. \"Things were already tough, but this made a declining situation very bad.\" The huge Costa Concordia hit rocks and pitched over off the picturesque Tuscan island of Giglio late Friday, a situation made worse by ship\'s captain Francesco Schettino\'s alleged abandonment of the vessel shortly after while passengers were still seeking safety. The captain was arrested as Italian navy divers continued to comb the half-submerged hull for more than two dozen missing passengers and crew. Costa Crociere officials laid the blame on Schettino, who through a lawyer Tuesday denied the allegations that he had abandoned ship. Shares of Carnival rival Royal Caribbean Cruises on Tuesday fell also, though just 4.1 percent.