Robert Sawatzky
Mar 13, 2020

Global markets rout continues to pound holding companies

Global recession fears over the COVID-19 pandemic continue to crush markets worldwide as Dentsu and Hakuhodo shares continue to fall in Tokyo trading on Friday.

Global markets rout continues to pound holding companies

Shares of Hakuhodo and Dentsu stock went on another wild ride in Friday trading in Tokyo, following the steepest day of global stock market losses seen in decades. Dentsu shares dropped as much as 8% in the morning before closing down 5.3%. Hakuhodo stock was even more volatile, plummeting 10% before ending the day 4.3% lower. 

The US Dow Jones Index plunged 10% on Thursday, marking its biggest one-day drop since Black Monday in 1987, and advertising holding companies were not immune.

In New York, Interpublic shares fared the worst, plunging 15.3% on Thursday while Omnicom stock dropped 9.2%, the least of all the big firms.  In London, WPP shares fell another 13.2%, while Publicis stock dove another 15% on the Paris Euronext exchange in what has been an atrocious month for shareholders.

While energy, transportation and hospitality stocks have been among the hardest hit, shareholders in the big ad holding companies have seen their positions lose nearly half their value in some cases over the past month.

3-month share price comparison between WPP and Omnicom. Source: Google Finance

Dentsu and WPP shares have lost the most value among peers in the last month, cratering 45% and 43% respectively.  Publicis, Hakuhodo and Interpublic have all been hit in a range of 38%-39% while  Omnicom has been the least scathed so far, but still down a whopping 29%. 

3-month share price comparison between Hakuhodo and Dentsu. Source: Google Finance

Editor's note: This article has been updated to acknowledge closing prices in Tokyo trading on Friday. 

 

 

Related Articles

Just Published

3 hours ago

Publicis parts ways with employee following ...

Holding company parted ways with Tom Goodwin after he tweeted about pandemic.

4 hours ago

Manan Shah joins Chimp&z Inc to head client services

Moves from AdLift where he also headed client services

7 hours ago

Havas Q2 organic revenue dives 18%

Asia-Pacific records sharp declines, but healthcare is a bright spot.

8 hours ago

In reverse decision, Vivo set to leave as IPL lead ...

Amid a public outcry over Chinese-Indian tensions, reports say Vivo is now likely to quit as lead sponsor of the tournament.