Coronavirus outbreak: Facemask-maker Kawamoto Corp sees sharp spike in stock price amid soaring demand

The coronavirus outbreak in China has the markets spooked, with businesses across the world advising against travel to China and airlines suspending flights to and from the country.

According to economic research firm AdMacro which was quoted by CNBC, global markets have been complacent in their reactions to the sudden outbreak of the virus, which the research firm called a potential "Lehman-type" moment for the global economy.

However, even as the deadly virus infected global stock markets and stocks that have exposure to China in particular, there are some healthcare stocks and those of pharma companies that have soared due to the impact of the coronavirus. One such stock is that of a Japanese mask-maker Kawamoto Corporation, which saw an almost five-time jump within the current month.

This company, which manufactures masks and other medical products, saw its share price go up from JPY 447 on December 30, 2019 to JPY 2,591 on January 29, 2020. In percentage terms, the price of the stock zoomed by 479 percent in a month.

Image credit: Reuters terminal

Demand for face masks and hand sanitisers has been on the rise in the affected region, with mask-making companies reportedly working round-the-clock to increase production to cope with the sudden rise in demand.

Earlier last week, the municipal government of the Chinese city of Wuhan made wearing face masks mandatory in light of the recent spread of the coronavirus infection.

Retailers in the US are also quickly running out of masks amid panic buying from consumers after five confirmed cases came to light in the country.

Azearth, a company involved in the making of protective clothing, also saw its scrip value go beyond double from JPY 593 to JPY 1,451 during the same period.