Coronavirus Impact and Three FTSE 100 Stocks at Their Fresh 52-Week Lows – CCL, AAL and EVR

Amid the rising threat of Novel coronavirus, the international market is continuously showing a downtrend. The London Stock Exchange is no different and had been reeling in red for last several sessions, which pushed the FTSE 100 Index to close at its lowest price since the year 2016, on 6th March 2020, when the FTSE 100 index dropped around 4 per cent and closed at 6,462.55 level.

Today we are going to discuss three FTSE 100 stocks which have tasted their fresh 52-week low price on 6th March 2020. These stocks are Carnival Plc, Anglo American Plc and EVRAZ Plc, the first one belongs to the Travel and Leisure industry, one of the most affected sectors due to the outbreak, while the other two stocks belong to Industrial Metals and Mining industry respectively, which too have started trending lower amid the concerns of demand and growth slowdown.

Carnival Plc

Carnival Plc (LON: CCL) is one of the biggest leisure travel company in the world. The company provides luxurious vacations at a very competent price. The company holds a fleet of 102 ships and move across over 700 ports throughout the world. The company has manpower of 1.2 lac and annually it gets guest from all across the world of over 11.5 million. The company is headquartered in London, England and Miami, Florida. The company’s stock is listed at two exchanges, i.e. the London Stock Exchange and New York Stock Exchange.

CCL – Financial Impact due to Novel Coronavirus

The company has informed that it is carefully evaluating the situation regarding the threat of Novel Coronavirus. Due to travel restrictions, the company has suspended cruise operations from China’s port, which resulted in the trips withdrawal in other parts of Asia as well.

The company believes that due to this threat, the impact on its international bookings and terminated voyages will result into a significant negative outcome on its financial results. The company further stated that if the Carnival Plc had to abandon all its Asia operation through the end of the April, it would negatively impact to its financial year performance of the year 2020 by $0.55 to $0.65 per share, which includes compensation provided to the customer as well.

The effect of Coronavirus is expected to weigh on international bookings, which will further impact financial performance in the coming months. However, the company is looking for some alternative arrangements to reduce the impact and will update in it’s first-quarter 2020 earnings release at the end of March 2020.

CCL – Share Price Performance

(Source: Thomson Reuters)

On 09th March 2020, at around 10:37 AM (GMT), by the time of writing this report, the stock of Carnival Plc traded at a price of GBX 1,863.0 per share on the London Stock Exchange, a decrease in the value of around 5.93 per cent or GBX 118.5 per share, as opposed to the closing price of the stock on the previous trading day, which has been reported to be at GBX 1,981.50 per share.

The share price of Carnival Plc recorded at GBX 4,249.0 as on 21st March 2020 was its 1-year peak price, whereas the share price recorded at GBX 1,758.50 as on 09th March 2020 was the 1-year low share price. The current share price was lower by 56.15 per cent from the 1-year high price, whereas the current share price was higher by 5.94 per cent from the 1-year low price.

The beta of the company’s stock has been reported at a value of 1.25, which shows that movement of the share price is more volatile against the movement in the comparative benchmark index.

Anglo American Plc

Anglo American Plc (LON: AAL) is a prominent global mining company. The company is into the production of Diamond, Nickel and Manganese, Copper, Iron ore, Coal and Platinum group metals. To discover new resources, the company uses new technology and innovative practices.

AAL – Updates

On 04th March 2020, the Chief executive officer of the company, Bruce Cleaver while reporting the price of rough diamond sales for De Beers', which for the second sales cycle for the year 2020 stood at $355 million, stated that they had acknowledged the effect of COVID-19 Coronavirus on customers concentrated on delivery to the Chinese market and have put more focus on flexibility to allow consumers to postpone allocations of the pertinent rough diamonds."

Later, on 6th March 2020, the company declared the temporary closure of the Anglo Converter Plant and announced the force majeure. On 10th February 2020, at Waterval smelter in Rustenburg, Anglo Converter Plant Stage A got damaged due to blast in the converter. The Stage B unit as per the usual business practice was directed to gain control from phase A plant and was in the process of working up to a normal state when water was discovered in the furnace. It is expected that around 80 days would be required to fix the phase B unit.

AAL – Share Price Performance

(Source: Thomson Reuters)

On 9th March 2020, at around 10:49 AM (GMT), by the time of writing this report, the stock of Anglo American Plc traded at a of GBX 1,507.2 per share on the London Stock Exchange, a decrease in the value of around 10.35 per cent or GBX 174.0 per share, as opposed to the closing price of the stock on the previous trading day, which has been reported to be at GBX 1,681.20 per share.

The share price of Anglo-American Plc recorded at GBX 2,294.0 as on 01st July 2019 was its 1-year peak price, whereas the share price recorded at GBX 1,316.0 as on 09th March 2020 was the 1-year low share price. The current share price was lower by 34.29 per cent from the 1-year high price, whereas the current share price was higher by 14.53 per cent from the 1-year low price.

The beta of the company’s stock has been reported at a value of 1.51, which shows that movement of the share price is more volatile against the movement in the comparative benchmark index.

EVRAZ Plc

EVRAZ Plc (LON: EVR) is a well-known company from the mining and steel industry. The company’s operations are spread across the USA, the Russian Federation, Canada, Kazakhstan and the Czech Republic. The company’s own mining operations cater to a significant part of its own internal iron ore and coking coal requirement. The company is traded on the London Stock Exchange under the footsie index or FTSE 100 Index.

EVR – Financial Highlights

The company, in its full-year results published on 27th February 2020, announced that the year 2019 was not a good year for the steel and commodity market as compared to the year 2018. The steel prices decreased due to additional supply in limited end-use demand atmosphere.

The company reported that the coal segment revenue declined by 13.5 per cent on year on year basis, mainly due to the low sale price for coal concentrate to third parties. Coal concentrate to third parties declined by 13.6 per cent because of the reduction in market demand from European countries, CIS and Russia.

On year on year basis, Coal segment's EBITDAÂ also fell, primarily because of sales prices trending lower, similar to the international benchmarks.

The Net profit of the company decreased significantly to US$ 365 million in the year 2019 as compared to US$ 2,470 in the year 2018. On the same time, the capital expenditure increased to US$ 762 million in the year 2019 as compared to US$ 527 million in the year 2018.

The profit from the operations also decreased, almost two times to US$ 1,217 million in the year 2019 as compared to US$ 3,528 million in the year 2018.

(Source: Company Website) Full-Year Report 2019

EVR – Share Price Performance

(Source: Thomson Reuters)

On 9th March 2020, at around 10:54 AM (GMT), by the time of writing this report, the stock of EVRAZ Plc traded at a price of GBX 238.9 per share on the London Stock Exchange, a decrease in the value of around 11.22 per cent or GBX 30.20 per share, as opposed to the closing price of the stock on the previous trading day, which has been reported to be at GBX 269.10 per share.

The share price of EVRAZ Plc recorded at GBX 710.20 as on 17th June 2019 was its 1-year peak price, whereas the share price recorded at GBX 225.50 as on 09th March 2020 was the 1-year low share price. The current share price was lower by 66.36 per cent from the 1-year high price, whereas the current share price was higher by 5.9 per cent from the 1-year low price.

The beta of the company’s stock has been reported at a value of 2.0, which shows that movement of the share price is twice more volatile against the movement in the comparative benchmark index.

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