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Stock market: these values ​​which benefit from the coronavirus crisis

2020-02-27T18:36:07.865Z


Canneries, distributors of sanitary products, pharmaceutical industry ... Certain sectors attract investors.


Panic in the markets. After having long underestimated the fallout from the coronavirus, stock markets around the world are waking up: since last Friday, the CAC 40 has lost almost 10%. In the United States, the S&P 500 fell more than 6.3% Monday and Tuesday, wiping out 1.7 trillion dollars in action, which is the worst two-day drop since 2015. But the crisis also has its share of opportunities: from canneries to distributors of sanitary products through the pharmaceutical industry, certain values ​​are doing well this week.

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As the world prepares for the epidemic, investors are betting on increasing sales from certain companies in the coming months. As always during a health crisis, the average person should hasten to fill their cupboards with cans and their fridge with frozen products to cover any shortage. A boon for leaders in these sectors.

The medical sector in full health

Obviously, health care companies are in great shape. The share of Euromédis , the French leader in disposable medical gloves, jumped 244% in one month. Similarly, the value of the Biosynex share, an Alsatian company that develops and markets medical devices for the screening of certain diseases, was doubled (+ 101%) over the same period. To a lesser extent, Boiron (+ 1.23%) outperformed this Thursday compared to the CAC 40 (-3.32%). In a different sector, Orapi , French leader in professional hygiene products, took more than 20% this Thursday.

The same goes for the American markets: Clorox , known for its bleaching and disinfecting wipes and household cleaning products, has increased by 13% since the start of the year. The company surpassed the S&P 500 by 17 percentage points over the period. In the food sector, the famous Campbell soups climbed during the day Monday, although they have since joined the downward trend of the market. Likewise Lamb Weston Holdings , which makes frozen food, was up 1.4% over the last month, down from the rest of the American industry.

Gold, the ultimate refuge value

Aside from these short-term bets, the majority of investors are turning to low-risk stocks: they first jumped on 10-year government bonds - pushing yields, which are moving in the opposite direction, towards record lows. Finally, the drop in stock market indices and the return of risks naturally benefited safe haven assets, including gold (+ 4% over the month). In New York, gold miner Newmont Mining had a great month of February, up 10%.

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But the big winner in recent days, from all points of view, is the pharmaceutical company Gilead Sciences , whose drug Remdesivir is currently undergoing a clinical trial as a possible treatment for the virus. The pharmaceutical company's share price has jumped almost 20% since the start of January.

Source: lefigaro

All news articles on 2020-02-27

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