While European equities slightly lagged behind, both the EURO STOXX 50 and the S&P 500 ended the month positively. According to the European Commission’s monthly survey, economic sentiment across the eurozone was up in August compared to July, and the EURO STOXX 50 increased by 3.09%. During the same time, the S&P 500 recouped its losses from the March sell-off and set a new record surpassing February’s all-time high. The index posted gains of 7.01%.
In this article, we share the sector that was traded the most and August’s biggest winner and loser.
Most traded sector
Similar to July, the automotive sector accounted for nearly half of the stocks on the map in August due to Tesla and NIO.
Tesla made headlines during the month when it announced a 5-for-1 stock split. Stock prices for the electric car company surged this year, and the split has enabled shares to become more accessible to investors. Shares began trading at their split-adjusted price on August 31st, and Tesla ended the month up by 74.15%.
Tesla competitor NIO also posted gains this month, increasing by 59.38%. Stock prices hit an all-time high after UBS upgraded NIO from sell to neutral and raised its price target by 1530%. Prices slightly fell at the end of the month however after the company announced an offering of 75 million American depositary shares (ADS). NIO announced on August 31st that it ended up selling 88.5 million ADSs for $17 each, raising around $1.5 billion.
The companies that saw the biggest price movement during August were Relief Therapeutics and Biomed Lublin. Relief Therapeutics was the winner this month, ending the month up by a staggering 1547.06%. Biomed Lublin was on the losing end, with prices dropping by 20.83%.
Relief Therapeutics is a small-cap specialty pharmaceutical company based in Switzerland. The company focuses on developing treatments for diabetic complications and respiratory diseases. It specialises in clinical-stage projects, primarily developing drugs of natural human origin with a history of clinical testing and use in human patients.
In August, one of Relief Therapeutics’ main products, Aviptadil (RLF-100), was approved by the FDA for inhaled use in patients with moderate and severe Covid-19 to prevent progression to respiratory failure. The drug is being studied in Phase II/III clinical trials and Chairman Raghuram Selvaraju said that there is a 60 to 70% chance that the drug will be approved. According to Relief Therapeutics, their drug is the first therapeutic to block replication of the SARS-CoV-2 virus in human lung cells.
Biomed Lublin went from being the winner in July out of the stocks on the map to the loser in August. It is a small-cap biotech company based in Poland. The company manufactures and distributes prescription drugs as well as other medical products.
Similar to Relief Therapeutics, Biomed Lublin is working on a drug for Covid-19. The drug is derived from plasma from healthy individuals that possess Covid-19 antibodies. In August, the company announced at a press conference that it will start clinical trials in approximately two months.
Investing via DEGIRO
Would you like to invest in a company that you see on the map? For all stocks trading on US exchanges, we offer a low fee of €0.50 + $0.004 per share. Fees vary for all other exchanges. For details, please visit our Fees Page.
In addition to these, DEGIRO offers a multitude of other companies and financial products to invest in on more than fifty exchanges across thirty countries. For details, please visit our Products and Markets page.
The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written. Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products that match your knowledge and experience.
Sources: Bloomberg, Reuters, T. Rowe Price, Tesla, NIO, Relief Therapeutics, Business Insider