Don’t worry – these are not the results of the year, but we are already as close to them as possible. Today we will try to captivate you with a list of the brightest and most dramatic ups and downs of quotes in 2020. Let’s not torment – to the point!
The black gold market still recalls April this year with horror: on April 20, the price tag fell by 305.97%, reaching a bottom at around $ 37.63 per barrel. Just in case, let’s clarify: this is not a hyphen or a middle dash – this is a minus sign.
Due to the spread of coronavirus infection, quarantine was introduced almost all over the world. Borders closed, the transportation industry stopped – oil demand fell dramatically and alarmingly. But production has just increased since April 1, because the OPEC + deal, which held back the largest exporters of raw materials, collapsed.
Under such conditions, the oil storage tanks filled up very quickly. The central hub in Cushing, where WTI oil is stored, was 72% full in early April. Perhaps this is the case when the optimist says that he is not full, but empty at 28%.
The expiration date of the May futures was approaching, nobody needed black gold, there was nowhere to store it, so investors began a massive sale, which crashed the market by more than 300%.
A particularly difficult period for Chesapeake Energy began this spring. Oil prices collapsed, production at shale fields became unprofitable, debt reached $ 9.16 billion, and losses for the first quarter exceeded $ 8 billion, which is almost 400 times more than in the same period of 2019.
In November, Chesapeake Energy’s share price dropped below $ 1 per unit, which made it impossible to trade securities on the New York Stock Exchange and threatened to be automatically delisted. To avoid this, the firm’s management decided to do a reverse split of 200 to 1, but the maneuver did not really affect the situation.
On April 12, a new OPEC + deal was signed, according to which oil-exporting countries pledged to reduce production and supply of raw materials from May 1. This agreement gave hope for the recovery of the oil industry and increased demand for securities of the highly undervalued representatives of this segment.
The speculators, who had been building up their short positions for a long time, did not expect the shares to rise and had to buy back the securities at any price. As a result, on June 8, Chesapeake Energy quotes jumped up 181.94% to $ 69.92 per unit.
But it was a one-day leap that was perhaps the last good news for the company. In late June, the firm filed for bankruptcy and received a delisting notice from the New York Stock Exchange.
For many years, the American biotechnology company Biogen has been developing a drug for the treatment of Alzheimer’s disease Aducanumab. It was only in August 2020 that an application for approval was filed with the Food and Drug Administration (FDA).
On November 4, the regulator announced that it received a sufficient amount of information from the pharmaceutical company and assessed the likelihood of approval for the use of Aducanumab as very high. The market immediately reacted positively to this news: shares of Biogen rose in price by 44%, from $ 247.01 to $ 355.63 per share.
However, a few days later, FDA panelists said they had not found convincing evidence of the new drug’s effectiveness in fighting Alzheimer’s disease. And then the stock fell by 36%.
To date, consideration of the application and the study of the submitted research materials continues. So there is still a chance of getting FDA approval. In addition, the company has submitted documents to the relevant European and Asian authorities.
On July 28, it was reported that the International Development Finance Corporation (DFC) would give the former manufacturer of photographic equipment a loan of $ 765 million. An unexpected turn, so to speak.
Eastman Kodak has maintained a strong base for the chemical industry since its leadership in the film photography market. And at these facilities, according to the terms of the deal, the company was supposed to organize the production of medicinal ingredients. According to DFC’s plans, the production volume could reach 25% of all the components the country needs.
On July 28, Eastman Kodak shares gained 203.05%, demonstrating an increase from $ 2.62 to $ 7.94 per share. The next day, the crazy jump was repeated – by 318.14%, to $ 33.2.
But already in August, the United States Securities and Exchange Commission (SEC) was interested in one nuance. The growth of quotations of the future manufacturer of medicinal components began one day before the official announcement of the loan. The company was suspected of insider trading, and its shares fell 72% within a month.
It was not possible to prove the charges, and then the SEC began to check the legality of the DFC’s decision to issue a loan of this size. On December 12, it became known that this investigation also did not lead to anything – Eastman Kodak shares jumped in price by almost 60%.
However, Congress joined the SEC, whose representatives were also very intrigued by the deal. Investigations are ongoing, so it is very difficult to predict whether Kodak will receive $ 765 million.
The popular cryptocurrency has shown gradual but stable growth since the beginning of the year. On February 9, the exchange rate even managed to reach $ 10,151.5 per coin. However, the spread of COVID-19 and the crisis caused by it hit this market too.
On March 12, the value of Bitcoin dropped by 39.18%, to $ 4,826. During the week, the digital currency has depreciated by almost half. However, later the negative trend was replaced by a positive one.
On October 21, PayPal announced that it is starting operations with Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. This news caused an increase not only in the quotations of the payment system, but also in the BTC rate: it rose by 7.55% and reached $ 12,825.
At the time of this writing, the price tag of the digital asset was $ 26,934.1. And this means: firstly, a new record was set, and secondly, the coin became more expensive by 274% during the year.
Summing up the result
Especially for you, we have compiled a rating of the most impressive jumps in the world market in the past year. We tried to describe in detail how the shares of Chesapeake Energy, Biogen, Eastman Kodak, as well as the price tag of WTI and Bitcoin, helped. It is clear that the main reason for such volatility was the COVID-19 pandemic, but it was still not the only one.
What other bright events on the market in 2020 do you remember? Write in the comments!