Port of Tauranga Ltd [NZX:POT] has been hit hard by market jitters today, losing over 4% of its stock value during bearish trading.
Port of Tauranga is the largest in the country, serving as a major gateway for cargo.
At the time of writing, the company has a market capitalisation of $4.475 billion, and the share price is currently $6.580.
Why has the [NZX:POT] share price decreased today?
Coronavirus fears have stoked another day of emotional upheaval.
Here are the key highlights:
- Italy is struggling to contain its coronavirus outbreak, which has accelerated past 300 infections in a short period of time. The region of Lombardy is the hardest hit, with over 200 cases reported.
- South Korea has seen a major surge of 900 cases, with the epicentre of the epidemic identified as a fringe religious group disregarding quarantine procedures.
- The Centers for Disease Control in the United States is warning that America must also brace itself for an inevitable flood of infections domestically. It’s not a matter of it but when.
These headlines have provoked negative sentiments across the globe. The financial markets have retreated even further as a result.
Where could the Port of Tauranga go from here?
The trade disruption looks set to continue, impacting cargo and container traffic to and from New Zealand. While no reported cases of coronavirus have been detected in the country yet, the global turmoil is impossible to ignore.
Port of Tauranga is feeling the ripple effect of this pessimism.
This bearish mood will likely prevail for the short- to medium-term.
Regards,
John Ling,
Contributor, WealthMorning.com