Stocks around are struggling around the world as the number of coronavirus cases surged in Italy and South Korea. The virus outbreak is a big problem for the two major economies.
South Korea’s Kospi index fell nearly 3.9% on Monday. It was the worst day since October 2018. In South Korea, confirmed cases surpassed more than 800.
In Italy, the main market index declined by more than 4.5% as the number of confirmed cases topped 200.
Stock markets across Asia are trying to deal with problems. Hong Kong’s Hang Seng index dropped 1.8%. Meanwhile, the Shanghai Composite declined by 0.4%.
Moreover, a growing number of companies are warning that they will miss sales or profit targets due to coronavirus outbreak. Also, the falling demand for goods and services, as well as factory closures in China, are going to affect the global economy.
BNP Paribas and Asian Stocks
According to the BNP Paribas, there are certain stocks worth buying during and after the coronavirus outbreak.
On Friday, analysts from France’s largest bank released a report. This virus changed the plans for millions of people who decided to stay at home. In this situation, retail players will benefit, according to BNP Paribas.
Analysts from the banks identified sectors and stock to invest during the outbreak. The list includes Chinese companies Tencent, Alibaba, Baidu, and JD.com. Moreover, it makes sense to invest in China Mobile as well as China Unicom.
Investors should have a look at the Indian IT companies such as Infosys, HCL Tech. Moreover, there are several other interesting companies from India, such as Bhariti Airtel and Marico Industries.
Let’s move to sectors and stocks worth buying during recovery. Analysts from BNP Paribas believe that concerns about output disruption would disappear thanks to positive news regarding the factory activity.
Thus, it makes sense to invest in stocks that have the potential to strengthen their positions after recovery. For example, Chinese companies such as Jiangsu Yanghe Brewery, Anta, Sports, Midea Group, etc.
Moreover, investors should pay more attention to Samsung Electronics as well as SK Hynix. They should not forget about Hon Hai Precision Industry Co Ltd, known as Foxconn.