Bear market to trigger recapitalisations, but make them harder

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Bear market to trigger recapitalisations, but make them harder

NYSE_PA_6_575_375
(200306) -- NEW YORK, March 6, 2020 (Xinhua) -- Traders work at the New York Stock Exchange (NYSE) in New York, the United States, March 6, 2020. U.S. stocks ended lower on Friday. The Dow decreased 0.98 percent to 25,864.78, the S&P 500 dropped 1.71 percent to 2,972.37, and the Nasdaq slid 1.87 percent to 8,575.62. (Photo by Michael Nagle/Xinhua) | Michael Nagle/Xinhua News Agency/PA Images

Companies with weak balance sheets will find it difficult to raise equity capital in the weeks ahead after oil prices plunged 30% overnight, tipping global stockmarkets into bear market territory. The difficulty is likely to be particularly acute for companies in sectors heavily exposed to the spread of the Covid-19 virus, such as energy, travel and tourism.

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