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Global stock indices have experienced the worst fall in years, since the 2008 financial crisis. As displayed in the chart below, markets have been falling and shedding value, primarily because of the increasing fears that the Covid-19 pandemic will wipe out corporate profits and push some of the world's biggest economies into recession.
By the time of writing, the FTSE 100 Index, the benchmark for the London Stock exchange market had shed 11.63 per cent in value in the last one month, while the US Dow Jones Composite Index was down by 10.32 per cent and the Nasdaq 100 Index was down by 7.20 per cent. On the same time, China's benchmark Index the Shanghai Composite closed the day at a loss of 3.7 per cent, bringing the loss in value for the week to 5.6 per cent. This was the worst single-week performance by the index since the month of April 2019, when the trade dispute between the United States of America and China was at its peak. Japan's Nikkei (N225) ended down by almost 3.7 per cent, while the key indices in both Australia and South Korea were down by 3.3 per cent.
European stocks suffered even greater losses, as more and more cases of Covid-19 were being diagnosed, as some Italian towns were put in lockdown, with as many as 17 deaths being confirmed in the country. The Italian Index FTSE MIB was down by nearly 4 per cent and Germany's DAX Index fell off by approximately 5 per cent in early trading today marking off the end for one of the worst weeks for the global stock markets in the last 10 years.
(Source: Thomson Reuters) Daily Chart as on 28-February-20, before the closing of the LSE Market
FTSE 100 Performance
By the time of writing as on Friday, 28th February 2020 at 12:24 P.M, the FTSE 100 index of the London Stock exchange was reported to have been trading at a price of 6612.27 points, which was also the 52-week low value of the index. This value was 2.71 per cent or 184.13 points below the value of the index at the time of the closing on the previous day, which was 6796.40 points. The index had also lost 6.11 per cent in the last two days since 25th February 2020 when it closed at a value of 7042.47 points. At the time of writing, the index value was also down by a massive 10.69 per cent, or 791.65 points, as compared to the closing value of the previous week. The 20-day Simple Moving Average (SMA) was reported to be at 7315.03 points, and as the graph below suggests, the SMA had only moved downwards since the middle of January when the news of Coronavirus outbreak was first confirmed. This indicates the fact that the average value of the FTSE 100 Index has only gone down in the last 1 and a half month, and will further fall if the trend of the trading continues to be affected by the fears of the epidemic spreading further.
(Source: Thomson Reuters) Daily Chart as on 28-February-20, before the closing of the LSE Market
In the last few days, certain FTSE stocks have also been extremely volatile, primarily due to the coronavirus outbreak. The following is a brief outlook of the stock price performances of two such stocks on the London Stock Exchange market.
BATM Advanced Communications Limited (LON:BVC) Stock Price Performance
As on 28th February 2020, at 12:30 P.M (Greenwich Mean Time), by the time of writing this report, the BATM Advanced Communications Limited stock was trading at a price of GBX 45.70 per stock on the London Stock Exchange market, a decline in the value of 3.99 per cent or GBX 1.90 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 47.60 per stock. As of the time of writing, the stock of BATM Advanced Communications Limited was reported to have been trading 26.94 per cent above the 52-week low stock price, that was GBX 36.00 per stock, and the company set this price on December 30, 2019. At this time, the stock price was reported to have been trading 15.37 per cent lower than the 52-week high price of GBX 54.00, that the company achieved as on April 25, 2019. At the time of writing this report, the market capitalisation of BATM Advanced Communications Limited has been reported to be at a value of GBP 209.88 million, with respect to the current trading price of the companyâs stock.
It has been reported that the BATM Advanced Communications Limited stock had lost around 3.89 per cent in value, in the last twelve months, since February 28, 2019, when the stock was trading at a price of GBX 47.55 per stock at the time of the close of the market. It has also been reported that the companyâs stock has lost approximately 2.77 per cent, in the last six months, in comparison with the stock price of GBX 47.00 at the time of the close of the market as on August 28, 2019. BATM Advanced Communications Limitedâs stock has been reported to have lost 2.84 per cent, in the previous thirty daysâ time from the stock price of GBX 44.44 per stock that it set as on January 28, 2020.
The beta of the stock of the company was reported at a value of -0.36 at the time of writing. This indicates the fact that the movement in the price of the stock, is less volatile and inverse, as opposed to the movement in the value of the comparative benchmark index.
Hunting Plc (LON:HTG) Stock Price Performance
As on 28th February 2020, at 12:40 P.M (Greenwich Mean Time), by the time of writing this report, the Hunting Plc stock was trading at a price of GBX 313.80 per stock on the London Stock Exchange market, a decline in the value of 5.20 per cent or GBX 17.20 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 331.00 per stock. As of the time of writing, the stock of Hunting Plc was reported to have been trading 10.88 per cent above the 52-week low stock price, that was GBX 283.00 per stock, and the company set this price on February 27, 2020. At this time, the stock price was reported to have been trading 52.24 per cent lower than the 52-week high price of GBX 657.00, that the company achieved as on April 23, 2019. At the time of writing this report, the market capitalisation of Hunting Plc has been reported to be at a value of GBP 553.39 million, with respect to the current trading price of the companyâs stock.
It has been reported that the Hunting Plc stock had lost around 42.68 per cent in value, in the last twelve months, since February 28, 2019, when the stock was trading at a price of GBX 547.50 per stock at the time of the close of the market. It has also been reported that the companyâs stock has lost approximately 26.99 per cent, in the last six months, in comparison with the stock price of GBX 429.80 at the time of the close of the market as on August 28, 2019. Hunting Plcâs stock has been reported to have lost 0.88 per cent, in the previous thirty daysâ time from the stock price of GBX 316.60 per stock that the stock set as on January 28, 2020.
The beta of the stock of the company was reported at a value of 1.3620 at the time of writing. This indicates the fact that the movement in the price of the stock, is more volatile, as opposed to the movement in the value of the comparative benchmark index.
Comparative share price chart of BVC and HTG
(Source: Thomson Reuters) Daily Chart as on 28-February-20, before the closing of the LSE Market
