While stock markets seemed to be less turbulent during April, the implications of COVID-19 have still pushed industries and companies in unprecedented ways. For example, the WTI oil benchmark fell below zero for the first time and Royal Dutch Shell cut its dividend, which it hasn’t done since World War II. Governments, companies and individuals are all having to adapt to the challenges and ‘new normal’ brought by the pandemic.
With lockdowns relaxing in some parts of the world and governments stepping in to bolster economies, April ended better than March. Both the EURO STOXX 50 and the S&P 500 ended April up, increasing 5.06% and 12.68% respectively.
Most traded sector
Due to Tesla’s strong presence on the map this month, the automotive sector was again the most traded. Although stock prices are still down from its high of $917.42 in February, prices increased by nearly 50% during April.
Tesla published its Q1 results at the end of the month. Despite car production limitations due to stay-at-home measures, the company saw its third straight quarterly profit and revenues that beat analysts’ estimates.
The electric car maker’s CEO, Elon Musk, has been vocal about his opinions regarding shut downs to curb the spread of the virus saying that they are fascist and not democratic. The Model 3’s only US assembly plant is in California, which has extended stay-at-home orders until the end of May. Musk says that this poses a risk but Tesla can weather the storm.
Biggest movement
Out of the stocks seen on the map, the stock with the biggest price movement was Novacyt, with a 110.36% increase during April. Novacyt is a small-cap French biotechnology company that focuses on clinical diagnostics.
Like many other companies, Novacyt has been making efforts to combat the spread of the coronavirus. Its molecular diagnostics division, Primerdesign, has created a test that is able to detect only the 2019 strain of the coronavirus. Other tests for the virus are allegedly less specific and can lead to false negatives. On April 8th, the World Health Organization (WHO) listed the company’s test as eligible for procurement for one year, unless there is a change in circumstances. Following the announcement, prices climbed more than 22%.
The company also announced that as of April 28th, it has sold, received orders for or has been contracted to deliver over £90 million of its tests for COVID-19.
Investing via DEGIRO
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During these unprecedented times, we at DEGIRO hope that you and your loved ones stay well and we are working as hard as possible to minimise disruptions in our service. More information about this can be found here.
The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written. Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products that match your knowledge and experience.
Sources: Bloomberg, Yahoo Finance, Novacyt, Tesla
