The eventful year 2020 is over and it is time to look how 30 publicly listed material companies have performed.
The “Corona-Crash” hit
bottom in March 2020 (around 16-18th) and with it the S&P
500 Index dropped around 34%. Central
banks in the USA and EU reacted fast and flushed the markets with money to
stabilize the situation – with success!
The
S&P 500 Index recovered in a V-shape in a month and most stocks rose again.
Travel, leisure and oil kept a much slower recovery, since those sectors are
still heavily impacted by the Corona Pandemic.
Overall
materials performance
The
Vanguard Materials ETF, which tracks the performance of a benchmark index that
measures the investment return of stocks in the materials sector, closes with a
20% return in 2020.
30
material stock companies in detail
18
out of the 30 stocks could make gains for their shareholders (date of estimation:
02.01.2021).
This
year, we will see a growth in resin demand. However material companies still
feel the recession in the US and European markets. The plastics industry played
a key part in battling the Covid-19 crises by supplying resins for various
healthcare applications. This calmed the rage against plastics.
In
the long-term, the plastics industry counts with a yearly polyolefin market
growth of 3 to 4% per year, since the world population is growing and access to
clean water over the piping systems is in high demand, as well as medical care
products and electronics.
Thanks for reading and
#findoutaboutplastics
Herwig
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