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The ASX had its worst day of the year so far as it woke up from Australia Day weekend to find global markets retreating on the back of renewed coronavirus fears.
The benchmark ASX 200 index shaved off more than a week’s worth of gains and is now back below 7000 points. The index retreated 1.35 per cent or 96 points today to close at 6994.50 points.
Energy stocks led today’s freefall as a severe crude oil price drop sent waves through the oil market. Brent crude dropped 0.34 per cent in price.
In response to oil movement, Woodside, Santos, and Origin Energy each dropped upwards of two per cent. Oil Search was ravaged further by an underwhelming quarterly report and closed the day nearly eight per cent lower.
Consumer stocks had a sour day as the Wuhan virus outbreak continues to impact travel, hotel, and tourism businesses. In the consumer discretionary sector, Crown Resorts lost 5.07 per cent, Flight Centre lost 4.12 per cent, and The Star Entertainment Group 5.24 per cent. Webjet crashed 13.86 per cent.
Consumer staples also closed red as small gains from Woolworths and Coles were offset by a steep 5.76 per cent decline from Treasury Wine Estates.
Mining stocks took a heavy hit after the long weekend as a slowdown in Chinese economic activity due to the coronavirus decreased demand for raw materials. Rio Tinto declined 3.09 per cent gain and BHP 3.34 per cent.
Fortescue Metals, which hit a new record high share price last weak, suffered a heavy 7.29 per cent decline and closed trading with shares worth $11.57 each.
The finance sector also declined, led by losses from each of our big four banks. ANZ lost 1.7 per cent, Commonwealth 1.08 per cent, NAB 0.74 per cent, and Westpac 0.83 per cent.
Only health care stayed green today as punters closely monitor any stocks that might come up with a cure or vaccine for the coronavirus. CSL carried the sector with a 0.63 per cent gain.
Looking overseas, European markets had a sorry day. Each major European index, including London’s Footsie, Frankfurt’s DAX and France’s CAC 40, each lost more than two per cent overnight.
Over east, Asian stocks were mixed. The Asia Dow and Nikkei 225 were both 0.83 per cent lower when the ASX closed, while Hong Kong’s Hang Seng was up a slight 0.15 per cent.
As for our local currency, one Aussie dollar is currently worth 67.59 US cents, 51.75 pence, 73.67 Japanese Yen.
Today’s ups and downs
In a tough day on the market, defence contractor Electro Optic Systems (ASX:EOS) hit a new all-time-high share price after announcing plans to enter the US defence market. The company will be coughing up $10 million to buy Audacy Corporation, a California-based satellite communications company.
Small-cap autism treatment specialist Neurotech International (ASX:NTI) closed nearly 30 per cent lower today. The company had its flagship Mente Autism product cancelled from the Australian Registry of Therapeutic Goods. The Therapeutic Goods Administration cancelled the device after a review into bio-feedback medical products. This means the device can no longer be sold in Australia. NTI shares closed worth 1.3 cents each.
