Investors are torn between a pick-up in economic activity and fears of a second wave of COVID-19 cases.
The resurgence in the number of coronavirus cases in Victoria is adding to worries as the US continues to struggle to contain the outbreak.
While the S&P/ASX 200 Index (Index:^AXJO) swung between gains and losses to end flat on Monday, travel-related ASX stocks were the standout losers from today's trade.
About to be hit by another wave?
It looks like state borders will be locked down for longer than most expected with Victoria reporting 16 new COVID-19 cases over the weekend, according to the Australian Financial Review.
What's even more worrying is that the source of the virus is unknown in a number of these cases.
Adding to the gloom in the sector are predictions that international travel is off the agenda until sometime in 2021. It may be the later half of next year before we can travel overseas or welcome international tourists.
ASX stocks worst hit by second wave fears
Little wonder the Corporate Travel Management Ltd (ASX: CTD) share price is the second worst performer on the ASX 200 today with a 8% crash to $11.03.
But its peers aren't far behind. The Webjet Limited (ASX: WEB) share price nosedived 5% to $3.78, the Qantas Airways Limited (ASX: QAN) share price dropped 4.1% to $4.19 and the Flight Centre Travel Group Ltd (ASX: FLT) share price declined by a similar amount to $13.05.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price didn't escape the sell-off with JP Morgan warning that earnings may take longer than expected to recover.
No place to hide
The 97% plunge in passenger numbers going through our nation's largest airport is only part of the problem.
The airport is likely to have to provide rent relief to its retail tenants while the fees it gets from its lucrative car parks will be nearly non-existent too.
Don't count on Sydney Airport paying a dividend this year either, according to the broker. JP Morgan is only tipping a dividend of 25 cents a share in 2021 and 37 cents the following year.
The broker reckons fair value for the stock is $5.10 and that's well below Sydney Airport's closing price of $5.95.
Foolish takeaway
There's really no reason to be buying Sydney Airport in my view with no dividend and little scope for a re-rating in the nearer-term.
There are much better ASX shares to be looking at in this coronavirus-stricken market. The experts at the Motley Fool have picked a handful that are worth putting on your watchlist.
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