Medical suppliers stocks surge amidst 3.1% STI decline

Four medical suppliers saw an average 48% increase in stocks as markets reacted to the new variant.

The Straits Times Index (STI) has declined by 3.1% from 3,221.52 on 25 November to 3,120.58 on 29 November. The Hang Seng Index has declined 3.6%, and the FTSE ASEAN All-Share Index has declined 2.8%. The uncertainty of the Omicron variant on vaccine efficacy and global containment measures has seen a sharp adjustment to the recent gains of stock sectors, industries, and valuations since Thursday.

At the same time, globally, pharmaceutical, healthcare services, and healthcare products have been the most defensive sectors. In Singapore, Medtecs International, UG Healthcare Corporation, Top Glove Corporation, and Riverstone Holdings comprised four of the five most actively traded stocks over the past two sessions. On 29 November, the four stocks saw close to $170m in shares traded, more than doubling Friday's $77m, and significantly higher than the combined average daily $20m for 2021 before 26 November.

Raffles Medical Group and Q&M Dental also ranked among the most defensive stocks over the past two sessions.