RE: Reuters report this 2 hours10 Feb 2020 10:51
The fear of the coronavirus has been spread to the financial markets, but it is also behind the meteoric rally that is recorded by the French biopharmaceutical Novacyt. Thanks to the launch of a test to detect the coronavirus, in the last eight sessions it accumulates a rally higher than 350%. The size of the economic alerts on the Chinese coronavirus has forced investors to try to protect themselves from its effects on financial markets. But in addition to adopting a more defensive profile, this situation has also surfaced some investment opportunities. Pharmaceuticals and facial mask manufacturers are in the spotlight of investors as potential beneficiaries. When identifying potential beneficiaries in the stock market, the French biopharmaceutical company Novacyt runs out of rivals in Europe. The company has become the star value of the last days in the European stock exchanges. The company specialized in diagnosis of diseases entered a new dimension on the stock market on January 31, when it announced the launch of a specific test to detect the coronavirus. The company highlighted at the time that it was the first test available in Europe to detect the coronavirus, and that before its launch it had already received numerous orders from more than a dozen countries. The forecasts of a massive demand for this test, which allows to know the result of the possible contagion in less than two hours, have put into action the actions of Novacyt. On January 30, a day before the official announcement of the new test, began a meteoric rally that persists today. The biopharmaceutical shot up 33% on January 30, a percentage that shot up 88% a day later, coinciding with the launch of the new test to detect the coronavirus. Since January 30, in six of the eight days their titles have closed with increases higher than double digits. The revaluation in today's day once again exceeds the 40% threshold. The magnitude of this rally triggers its shares at intraday highs above the level of 0.80 euros. Only in the last eight days, since January 30, Novacyt accumulates a revaluation of over 350%. The reduced liquidity of the biopharmaceutical on the stock exchange, due to its small size, helps to multiply the effects of the wave of purchase orders that it is receiving in recent days..