SINGAPORE/SYDNEY - News of a Boeing 737 Max crash operated by Ethiopian Airlines is bringing out equity bears.
Boeing shares slumped 8.9 per cent to US$385 in pre-market US trading. The shares lost 19 per cent in Germany and could slide in US trading as concerns are increasing over the jet, said Eleanor Creagh, a Sydney-based market strategist at Saxo Capital Markets.When a Lion Air plane of the same model sank into the Java Sea off the coast of Indonesia last year, killing 189 passengers and crew, the shares lost almost 7 per cent.
Shares of the US manufacturer have gained 31 per cent this year, the most among Dow components and adding more than US$55 billion in market cap. Risk appetite has weakened and the bar for positive surprises is now higher after a more than US$9 trillion global equity rally since a December low. The Dow, where Boeing has an 11 per cent weighting, dropped 2.2 per cent last week.