The Warehouse Group Ltd [NZX:WHS] has enjoyed a market rally today, gaining over 6% during bullish trading.
The Warehouse — founded in 1982 — is New Zealand’s largest retail group. It has a strong presence in Kiwi metro centres. The conglomerate also operates popular outlets such as Warehouse Stationery, Noel Leeming, and Torpedo7.
The Warehouse share price is currently sitting at $2.29 at the time of writing, and it has a market capitalisation of $820m.
Why has the [NZX:WHS] share price increased today?
Coronavirus fears sparked an emotional upheaval last week, causing stock prices to plummet. Heavy sell-offs resulted in losses over $6 trillion. A truly breathtaking sum.
Many analysts believed that this could mark the beginning of a global recession.
However, in a dramatic turn, markets around the world have since rebounded, erasing the sour mood. The Dow and S&P indexes, in particular, have posted very positive results.
This has led to renewed confidence in the Australia and New Zealand.
A more bullish sentiment prevails — which has directly benefited stocks like The Warehouse.
Where could The Warehouse go from here?
At this point, the immediate outlook remains murky.
The coronavirus continues to disrupt global trade and travel.
However, for fund managers and individual investors willing to take a punt, this correction could offer a unique chance to gain value.