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Tesla finally takes Toyota’s crown

The latest development in the long-running race saw the electric carmaker pull ahead of its biggest rival to become the most valuable carmaker in the world on Wednesday. Tesla’s share price surge put its value at $207bn, to Toyota’s $172bn. Toyota’s share price has taken a hit from the coronavirus pandemic recently, whereas Tesla’s stock has climbed 181% for the year to 2 July.

FedEx has delivered

FedEx, which has struggled recently compared to its former ground delivery partner Amazon, has registered a strong share price performance after delivering better-than-expected fourth-quarter and full-year earnings earlier this week.

One for the record books

Markets globally struck a better note yesterday after an uncertain week. Major indices across Asia — the Hang Seng in particular — jumped up and European markets followed suit, although to a lesser degree. Major US indices climbed, and S&P 500 added to gains it made Wednesday. These gains had taken its total for the 100 days since 23 March bottom to 40% — the highest such rally since 1933, according to Bloomberg.

  • FTSE 100 – 6,240.36 (+1.34%)
  • Dow Jones – 25,989.18 (+0.99%)
  • S&P 500 – 3,144.18 (+0.91%)
  • NASDAQ – 10,389.38 (+1.07%)
  • Stoxx 600 – 368.03 (+1.89%)
  • SSE Index – 3,090.57 (+2.13%)

Taking over the wheel

Luxury car brand Aston Martin Lagonda’s share price crashed in the first half of the year, dropping 90.5%. However, its new executive chairman Lawrence Stroll hopes to get back on track with a change of leadership, bringing in Tobias Moers as new CEO and Kenneth Gregor as CFO, in an attempt to return to profitability.

Burgeoning biotech stock surges 600%

Little known Norwegian biotech company ArcticZymes Technologies has gained 589% so far this year (to 2 July) to become Norway’s best-performing stock, according to Bloomberg. The company recently said it would supply materials to aid the production of a potential COVID-19 vaccine. However, the stock’s extraordinary performance further fuels fear of a biotech bubble.

JD.com’s secondary listing boost

The Chinese retail giant recently listed on the Hong Kong Stock Exchange, one of many Chinese companies repositioning due to ongoing trade tensions between China and the US. The stock, initially priced at HK$226 per share, has climbed gradually to close yesterday at HK$235.

South Korea’s biotech bubble

SK Biopharmaceuticals rose 30% on its debut yesterday, doubling its initially offered price after reaching the KRX maximum. The company became the fourth-largest healthcare stock in South Korea at $8.2bn, after what was the country’s largest first share sale for three years. However, concerns have been raised over the huge valuations of these top stocks, in some cases 80 times 12-month forward earnings, Bloomberg notes.

When life gives you lemons

Late Wednesday, insurer Lemonade priced its IPO at $29 a share, which had already been adjusted up from a range of $23– $26 to $26–$28, MarketWatch reports. The company’s digital and AI focus is expected to disrupt the insurance market, which has been hotly debated recently due to the impact the coronavirus pandemic has had on the industry.

Should investors avoid individual stocks?

Falling fees for mutual funds and ETFs has created significant savings for investors, according to MarketWatch. It cites recent Morningstar research showing that average fund expenses dropped from 0.87% in 1999 to 0.45% in 2019 — providing a yearly saving of $5.8bn, according to the publication. The cheapest 20% of funds attracted net inflows of $581bn last year, with 70% going into index funds.

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