Industrial goods, finance and services are now the most affected stock sectors due to the ongoing Coronavirus (COVID-19) pandemic. Data gathered and calculated by Learnbonds.com indicates on average, the performance of the stocks of these sectors over the last one week, one month and three months was -16.6%, -31.6% and -28.1% respectively.
From the data, the stock market performance of most sectors has been greatly impacted by the COVID-19 virus since it was first reported about three months ago. Over the last seven days, industrial goods performance stood at -19.6% followed by the finance industry at -14.6%. The service industry sector is at -14.6%. The data further indicates that the basic material sector is the worst-performing at -20%.
Similarly, over the last one and three months, the three sectors have struggled to cope. For the last month, the performance of the stocks for industrial goods, finance and Services sectors was -34.6%, -32.1% and -26.8% respectively. Elsewhere, three months ago, industrial goods were the most impacted sector at -32.0% followed by finance with -29.9% while services had -22.4%.
Healthcare stocks show improvement
A general overview of the performance of the stocks indicates that the healthcare sector has been improving since the Coronavirus broke out in Wuhan, China. Over the last month, when the novel Coronavirus had significantly spread out of China, the healthcare sector was the least affected at -19.3%.
During this period, the virus was first reported in Europe and North America. Currently, the rate of infection has drastically dropped in China while Europe and the US are battling to contain the spread.
Three months ago, when the Coronavirus outbreak was first reported, the health sector performance stood at -16.0%. Only two sectors were ranked higher, with conglomerates at -15.5% followed and utilities at -13.9%.
In February, the world was beginning to come to terms with the severity of the virus leaving the global financial markets on the edge. Although the virus mostly affected China, it has spread to about 100 countries and has been declared a pandemic by the WHO.
Although almost all sectors have been hit by the Coronavirus crisis, with time, the healthcare sector appears to be the least affected. This might be due to the fact that the pandemic might deliver huge profits for various healthcare enterprises that are offering support to contain the virus. Different enterprises are offering support in terms of medicine, protective gear among others.
COVID-19 impact on market capitalization
As the stocks of different sectors continue to be impacted by the Coronavirus, there is a possibility the market capitalization of these sectors will be impacted also.
Currently, the financial sector has one of the highest market caps of $7,311.75 billion. This sector comprises a broad range of sectors including banks, investment companies, and insurance companies.
The service sector has a market capitalization of $6,166.57 billion. This industry involves the provision of services to businesses as well as final consumers. Elsewhere, the industrial goods industry has a cap of $1,904.60 billion. This category of stocks entails companies that produce capital goods used in construction and manufacturing.
With stocks of the healthcare sector improving amid the COVID-19 outbreak, the current market capitalization might also improve. Currently, the sector is valued at $4,934.91 billion. Basically, these stocks comprise aggregation and integration of sectors within the economic system that provides goods and services to treat patients with curative, preventive, rehabilitative, and palliative care. Managing the Coronavirus heavily relies on these services and goods.
There is no doubt that the COVID-19 situation is negatively impacting the global economic landscape. Estimating the impact is challenging because historically, the global economy has not been in such a situation over recent years. Countries are now putting stringent measures to contain the spread.
However, to estimate the real impact is by keenly following the extent to which measures such government shutdowns and travel bans are going to last. Such measures have been put in place to manage the virus. In the meantime, most governments are announcing plans to cushion businesses against the impact of the pandemic.