© Reuters. A Boeing 737 MAX 8 aircraft bearing the logo of China Southern Airlines is parked at a Boeing production facility in Renton, Washington
By Sanjana Shivdas
(Reuters) – Boeing (NYSE:) Co shares tumbled more than 5 percent on Monday after China, Indonesia and Ethiopia ordered airlines to ground the aircraft maker’s best-selling line of jets after the second deadly crash of one of the planes in just five months.
While the slide lopped off $12.7 billion in the market value of one of the 10-year bull market’s powerhouse stocks, the one-day loss was far more limited by the closing bell than earlier in the session as some investors bet long-term risks were limited.
Dropping in the early moments of trading by the most since Wall Street reopened after the Sept. 11 attacks in 2001, the stock recouped nearly two-thirds of its losses on the heaviest trading volume in nearly six years.
“Despite the immense tragedy we think the company will fix what we believe is largely a software and training issue,” said Nancy Tengler, chief investment strategist at Tengler Wealth Management, which counts Boeing among its largest holdings.
The volatility followed Sunday’s crash of a Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines just minutes after takeoff from the country’s capital Addis Ababa, 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.
The single-aisle 737, the world’s most-sold commercial aircraft, is central to Boeing’s future. The MAX line is the fastest-selling jetliner in the company’s history with more than 5,000 orders booked and a backlog valued at nearly $500 billion at list prices.
The 5.3 percent drop in share price on Monday wiped nearly $13 billion off Boeing’s market value –