facebookHow are the various markets around the world reacting to the whole COVID-19 situation? - Seedly

Anonymous

17 Mar 2020

Random

How are the various markets around the world reacting to the whole COVID-19 situation?

With the current "Twin Storms" of the oil prices and the COVID-19 situation, how are we thinking about the market?

Discussion (3)

What are your thoughts?

Learn how to style your text

Kenneth Lou

12 Mar 2020

Co-founder at Seedly

The Only Thing To Fear Is Fear Itself

If you look at this simple breakdown, you can actually feel it at present day - mid March 2020. It is very real.

Here's a quick summary I found on a DBS research paper:

  • The COVID-19 situation in China has improved tremendously over the past month even as more countries are affected.

  • STI earnings are slashed by 6.3% and 5.6% for FY20F and FY21F respectively, leading to almost zero growth for STI this year.

  • Equity researchers identify the five phases (fear, anger, relief/acceptance and finally recovery) of COVID-19 experience and the sector outperformers/underperformers.

  • Equity researchers believe that China has started its recovery phase, where sector outperformers are manufacturing and domestic demand (F&B and retail).

  • Singapore is at the relief/acceptance phase, and its sector outperformers are telecom and domestic demand (F&B and retail).

In terms of a simple strategy, they advocate a Two Pronged approach:

  1. COVID-19 resilience list - Stocks that are resilient to the supply chain disruption, sharp drop in consumer discretionary spending and impact of travel restrictions.

  2. China’s COVID-19 recovery and Singapore malls’ footfall recovery.

Read the full report here.​​​

View 2 replies

Write your thoughts