Stocks Impacted By Coronavirus
In November 2002, severe acute respiratory syndrome (SARS) began spreading around the world. The World Health Organization (WHO) to declare the ailment “a worldwide health threat.” It was believed that SARS started in China where the outbreak of SARS infected more than 5,000 people and killed 300 nationwide.
Now the world is dealing with a Coronavirus, a virus that can infect mostly pigs, cats and other animals, but can also jump from animals to humans, and from one human to another. The outbreak is believed to have originated in the city of Wuhan in December, and has spread to other cities in China as well as other countries. It’s even hit the US…a man in Washington State was diagnosed the first case to be confirmed in the U.S.
Symptoms of the coronavirus infection include coughing, fever and in more severe cases pneumonia or even and death. Some experts in the field say that while it’s still early, the virus does not seem to be as lethal as SARS. Tell that to the Equity Markets.
Equity markets sold off yesterday as fears grow that coronavirus could disrupt travel and commerce and slow economic growth. The news sent Asian and US stocks down, as well as commodities and sent investors rushing into safe haven assets like bonds. Three stock hit hard in particular was Las Vegas Sands and Ctrip.com
Las Vegas Sands (LVS) was falling Tuesday as shares of the gaming and resort company faced a downgrade from Morgan Stanley and growing concerns over the outbreak of the deadly coronavirus in China.
Las Vegas Sands have extensive operations in Macau, which sparked worries among investors that business could suffer fallout from the spread of the coronavirus.
Chinese authorities on Tuesday confirmed six deaths in an ongoing virus outbreak in the country, bringing the total number of confirmed cases to more than 300. Outside China, cases have also been confirmed in Thailand, Japan and South Korea, according to the Centers for Disease Control and Prevention.
Bernstein analysts warned that the pneumonia outbreak could have a lasting impact on Macau’s gaming operators.
As millions of Chinese people jam travel domestically and abroad the Chinese Lunar New Year, the entire world is on alert. However, this will surely affect Ctrip.com
Ctrip.com International, Ltd. operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. Ctrip.com is the Chinese version of Booking (aka Priceline) and Expedia.
On the coronavirus news, Ctrip.com stock price fell nearly 10%.
Among the cruise ships Royal Caribbean was hit the hardest, down 4.7% for the day because Royal Caribbean generated almost 10% of its revenue from China in the last 12 months.
SARS lasted for about 12 months back in 2002, how long will coronavirus is anybody's guess. Regardless, the Markets are going to sell off first, then ask questions later.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
