UPDATE 2-Flu outbreak hits Mexican stocks

(Adds UBS comment, other industries affected, byline)

By Cyntia Barrera Diaz

MEXICO CITY, April 27 (Reuters) - The swine flu crisis is hitting Mexican retailers and airport operators as shoppers stay home to avoid infections and foreign tourists shun travel to a country where more than 100 have died in the outbreak.

Shares of leading retailer Wal-Mart de Mexico (WALMEXV.MX), a unit of U.S. retail giant Wal-Mart Stores (WMT.N), dropped nearly 7 percent to 37.22 pesos after losing 10 percent earlier in Monday's session.

A company spokesman declined to comment on the effects of the outbreak on the retailers' operations.

Authorities in Mexico City and surrounding area asked people to remain at home; schools were shut until May 6 and many churches, bars and restaurants were closed on Sunday, the main shopping day for many.

"The recommendation to stay home, at least during the last three days, has an effect on (store) traffic," Marisol Huerta, an analyst with Actinver brokerage said.

On Sunday, deliver-to-home carts full of food and water lined up outside a Walmex Superama store in a posh residential area in the capital as worrisome customers did not even venture into the supermarket due to the flu scare.

Shares in airport operators plunged as investors dumped stocks in companies seen as threatened by the swine flu outbreak.

Shares in airport operators Grupo Aeroportuario del Pacifico (GAPB.MX) (PAC.N) were down 14.38 percent; Grupo Aeroportuario del Centro Norte (OMAB.MX) were down 10.53 percent and Grupo Aeroportuario del Sureste (ASURB.MX) (ASR.N) lost 8.48 percent.

The United States declared a public health emergency and Americans and Europeans were urged to avoid non-essential travel to Mexico, where tourism is among the country's top revenue sources.

UBS said in a report that Mexico's gross domestic product, already suffering from a global financial crisis, is likely to be negatively impacted as sectors linked to travel, tourism and entertainment outside homes will be severely hit for at least a few weeks.

"The most vulnerable stocks under UBS coverage on a short term basis would be airports, and beverage companies," it said.

"In the medium term, and if the crisis continues for any length of time, then economically-sensitive companies (America Movil (AMXL.MX), Televisa (TLVACPO.MX), Walmex, Cemex (CMXCPO.MX)) would all be impacted too." (Additional reporting by Gabriela Lopez; editing by Leslie Gevirtz)