Dow plunges 1,100 points as the coronavirus sends the market tumbling into correction territory; European stocks close 3.6% lower and enter correction territory amid coronavirus fears
Dow plunges 1,100 points as the coronavirus sends the market tumbling into correction territory
Stocks fell sharply in volatile trading Thursday as investors worried the coronavirus may be spreading in the U.S. A slew of corporate and analyst warnings on the virus dragged down the major averages, tipping them into correction territory. The Dow Jones Industrial Average plummeted 1,190.95 points, or 4.4%, to close at 25,766.64. The S&P 500 slid 4.4% to 2,978.76 while the Nasdaq Composite dropped 4.6% to 8,566.48.European stocks closed sharply lower Thursday as the rapid spread of the coronavirus weighed heavily on market sentiment.
Microsoft said Wednesday it will not meet its revenue guidance for a key segment. It said its supply chain is “returning to normal operations at a slower pace than anticipated,” which led the tech giant to cut its forecast for its personal computing division. Personal computing accounted for 36% of Microsoft’s overall revenue during the previous quarter. Microsoft shares were down 7.1%. PayPal also issued a warning about its outlook.
The pan-European Stoxx 600 closed 3.6% lower provisionally, officially entering correction territory as it was off more than 10% from its record high notched on Feb. 19 last year. The index also hit a 4-month low, while all the major indexes were firmly in the red. Germany’s DAX finished lower by 3.1%, Britain’s FTSE was down 3.5%, while France’s CAC 40 fell 3.2%.
On the data front, euro zone economic sentiment in February came in at 103.5, up from 102.6 in January and beating consensus expectations for a reading of 102.2, while consumer confidence came in at -6.6, up from -8.1 in January.
KMBN: Komercijalna Banka sold for EUR 387 million – NLB to become the third largest bank in Serbia through the acquisition of 83.23% shareholding
On February 26, 2020, Nova Ljubljanska banka (NLB) entered into a share purchase agreement with the Republic of Serbia for the acquisition of an 83.23% ordinary shareholding in Komercijalna Banka a.d. Beograd at the price of EUR 387 million. The closing of the transaction is expected in Q4 2020 and is subject to mandatory regulatory approvals from, among others, the European Central Bank, Bank of Slovenia and the National Bank of Serbia, NLB says in a press release. The consideration for the 83.23% shareholding amounts to EUR 387 million, which will be payable in cash on completion. In accordance with Serbian bank privatization regulations, NLB is not required to launch a mandatory tender offer for minorities’ shareholdings in KB – NLB emphasizes. They also explain that “the purchase price implies a valuation of EUR 465 million for 100% of KB’s ordinary share capital, representing a multiple of 0.77 x KB’s IFRS consolidated shareholders’ equity as at June 30, 2019, and a multiple of approximately 6x KB’s estimated earnings for 2019”.
January growth rate at 6.5%
Serbian PM Ana Brnabic on Thursday said the Serbian economy had grown at a rate of 6.5 pct in January. "We are continuing strong growth and a recovery of our industry," Brnabic said in the parliament, where she and members of her cabinet responded to questions from MPs. She announced the Council for GDP would soon meet again as the country needed to maximise growth.
ENHL: Energoprojekt reports EUR 75m of new jobs
Energoprojekt reported EUR 75 of new jobs contracted abroad as well as in Serbia, at the end of 2019. The notification published at BELEX web site says, EUR 35m is related to construction of football stadium at Siktivkar in Russia, while EUR 22m is about residential building constriction in Belgrade. Remaining 17.5m is related to construction of control tower at Belgrade Airport.
Source: Belex, Ilirika