Shares of Boeing slid ten percent after China, Indonesia and Ethiopia ordered airlines to ground their Boeing 737 MAX 8 planes following the second deadly crash involving the jet in just five months.
The losses put the stock on course for its biggest daily fall in nearly two decades, halting a surge that has seen Boeing’s market value triple in just over three years to a record high of $446 per share.
The 5.3 percent drop in share price on Monday wiped nearly $13 billion off Boeing’s market value, an abrupt reversal for a stock that had been the runaway top performer so far this year on the Dow Jones Industrial Average.
A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after takeoff from Addis Ababa on Sunday, killing all 157 on board.
The same model, flown by Lion Air, crashed off the coast of Indonesia in October, killing all 189 on board.Do you want to be the first to get these news,updates and vital info?