The Sell Down, The Rebound, The Pandemic (Updated with Sector info)

In a previous article, 885 stocks were grouped based on their performance during Jan – Mar, Mar – Jun, and Jan – Jun 2020 (Read more here), but no sector info were presented.  This article updated the sector info.

Graph 1 is the sell down range sector info that correspond to Table 1 in previous article.

Graph 2 is the sell down, rebound, & YTD (4th June 2020) sector info.

Table A is the summary of performance with sector info.

Based on the info, energy sector is the worst hit sector with average sell down around 62%, and dominate the worst sell down range 50% - 90%.  While this sector has rebounded about 111% from March till 4th June, it is still 31% down from Jan high.

Healthcare is the best performance sector where the YTD (4th June 20) performance was 138%.

Technology, Industrial, Telco, and Utilities also almost recouped back to Jan level.

Plantation, Property, Construction, Transportation & Logistic, Closed-End, Financial, and Consumer sectors were still 10% to 20% below their Jan level.

Graph 1: Sell Down (Jan - Mar) Range Sector Info

Graph 2: Sell Down, Rebound, & YTD (4th June 20) Performance by Sector

Table A: Summary of Performance with Sector Info

The Sell Down, The Rebound, The Pandemic

885 stocks were grouped based on their performance during Jan – Mar, Mar – Jun, and Jan – Jun 2020.  All data were taken from Bursa Market Place (Read more here).  About 95% of stocks were battered down during the sell down time frame.  50% of them dropped between 30% to 60%.

During the rebound period (Mar – Jun), the group of stocks which were hammered down the most in Jan - Mar period were the best performers.  If you bought these 11 stocks in Mar, your average return is 187%!  But their YTD performance is still -55%.

Generally, the rebound magnitude is directly proportionate to the magnitude of the sell down.  Will these stocks continue to recoup their loses in the next three months?  We shall update the results by the end of RMCO.

Stay Safe!

Table 1

Sell Down Range	Average Sell Down	Average Rebound	Average YTD	No. Stocks
-80% to -90%	-84%	187%	-55%	11
-70% to -80%	-74%	157%	-32%	48
-60% to -70%	-65%	100%	-30%	89
-50% to -60%	-55%	98%	-12%	147
-40% to -50%	-45%	64%	-10%	150
-30% to -40%	-35%	46%	-5%	160
-20% to -30%	-25%	36%	1%	115
-10% to -20%	-16%	26%	6%	85
0% to -10%	-6%	5%	-1%	39
10% to 0%	4%	20%	25%	27
20% to 10%	13%	128%	156%	8
30% to 20%	22%	132%	184%	4
40% to 30%	33%	415%	587%	1
50% to 40%	n/a	n/a	n/a	0
60% to 50%	59%	12%	77%	1
70% to 60%	n/a	n/a	n/a	0
80% to 70%	n/a	n/a	n/a	0
90% to 80%	n/a	n/a	n/a	0
100% to 90%	n/a	n/a	n/a

Worst Performers (-40% to -90%) During Jan - Mar Period

Disclaimer:  The above analysis does not imply any buy or sell recommendation.  The author disclaims all liabilities arising from any use of the information contained in this article.

Disclosure: The author may have interest in the stocks of the companies in this article.