Cancellations sink cruise line stocks again
Norwegian Cruise Line Holdings saw its share price drop again after announcing that it will not run cruises until at least October, MarketWatch reports. The stock dropped more than 10% in pre-market trading yesterday, to later close down 6.11%. Fellow cruise operators Carnival and Royal Caribbean Cruises also suffered losses.
Berkshire Hathaway has been a casualty of the recent market downturn
Warren Buffett’s Berkshire Hathaway has been a casualty of the recent market downturn, its shares having underperformed the S&P 500 in 2020. BRK’s highest profile investments in recent years – the $3bn write-down it took on its Kraft Heinz stake, plus a $10bn bet on Occidental Petroleum (which is no longer paying a cash dividend) – bears testament to the idea that the Oracle of Omaha has missed the rally, and may require a strategy rethink, according to the Financial Times.
New listing defies downturn in the Philippines
MerryMart Consumer Corp saw great success on its IPO earlier this week, even as the Philippine Stock Exchange posted its biggest loss in two months, Bloomberg reports. MerryMart sold shares at PHP1 per share and the stock closed at PHP1.50 Monday after hitting the 50% daily increase limit.
The emerging markets that could outperform
Although there is some concern among commentators that emerging markets are likely to suffer the most from the economic fallout of COVID-19, there are some that could excel. According to FIM Partners, Peru, the Philippines and Vietnam are best positioned to recover after the threat from COVID-19 declines, the Financial Times reports.
Royalty Pharma took WMG’s IPO crown
In early June, Warner Music Group became the biggest IPO in the US this year after raising £1.9bn. It did not hold this accolade for long, however, after Royalty Pharma raised $2.2bn in its IPO earlier this week. As the pandemic-induced freeze on IPOs thaws, the list of those poised to debut grows longer.
Fund managers think stocks are overvalued
A recent study from Bank of America has found that almost 80% of fund managers — with a combined $600bn of assets — think that stocks are priced too high, according to the Financial Times. The proportion of managers agreeing with this sentiment is at its highest since the study began in 1998.