Reliance Worldwide, the $2.5 billion manufacturer of plumbing supplies, might not be the first ASX-listed company that comes to mind when investors are looking for a bellwether stock.
If there is one thing investors hate, it is uncertainty. And it’s clear that Reliance – which is also battling the closure of its factory in the Chinese city of Ningbo as part of broader COVID lockdowns – is facing a real battle to see what’s coming. Sharp argues the current trading conditions need to be seen in the context of a bumper two years during COVID-19, when
On top of this, supply chain problems have not been completely flushed out of the system – particularly if you’re exposed to China, where the COVID lockdowns the rest of the world has moved on from are still alive and well.