Global rescue plan to fight coronavirus fails to boost markets: ASX closed 5.3% lower

Market Reports

by Rachael Jones

After a promising start, the Australian share market took a dip around midday trading and failed to gain momentum bourse closing 5.3 per cent lower. Wisetech Global (ASX:WTC) shares rose today as did Clinuvel (ASX:CUV). Declines were seen with oOh!Media (ASX:OML) and Credit Corp (ASX:CCP). As for the sectors they all closed in negative territory today with Utilities losing the least and Real Estate Investment Trust fell lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 271 points lower to finish at 4,842.

Futures market

Dow futures are suggesting a fall of 522 points.
S&P 500 futures are eyeing a fall of 63 points.
The Nasdaq futures are eyeing a dip of 153 points.
And the ASX200 futures are eyeing a 5.9 per cent fall for tomorrow morning.

Broker moves

UBS has upgraded Dominos Pizza Enterprises (ASX:DMP) to a Neutral from a Sell. The broker believes earnings risk from the coronavirus crisis is manageable and transitory, especially as they increase deliveries. Target price is reduced to $51.00 from $52.50. Shares in Dominos Pizza Enterprises (ASX:DMP) are 0.7 per cent higher at $50.57.

Company news

The Johns Lyng Group (ASX:JLG) say they are currently managing an unprecedented level of demand for services. They say a spate of recent extreme weather events, including this summer’s catastrophic bushfires is the reason for the high demand. They say it’s of vital importance that people who lost homes and livelihoods before coronavirus hit are given the best chance to get themselves and their properties back on their feet. Shares in the Johns Lyng Group (ASX:JLG) closed 4.3 per cent lower at $2.03.

Adairs (ASX:ADH) will temporarily close all of its Australian stores from close of trade on Sunday 29 March 2020. Stores will be closed for an initial period of 4-6 weeks but online channels will continue.
Syrah Resources (ASX:SYR) says The Government of Mozambique has enacted additional measures in relation to the management of COVID-19, including suspension of all inbound travel visa operations and mandating 14-day selfquarantine for all international arrivals. They have therefore temporarily suspended production at Balama Graphite Operation from tomorrow.
Incitec Pivot (ASX:IPL) today announced that the 50/50 joint venture project concerning the coal seam gas acreage (ATP 2031) in Queensland’s Surat Basin has been temporarily paused at the request of its partner Central Petroleum (ASX:CTP).

Best and worst performers 

The best performing sector was Utilities losing the least at 0.4 per cent while the worst performing sector was Real Estate Investment Trust, shedding 8.7 per cent.

The best performing stock in the S&P/ASX 200 was ALS (ASX:ALQ), rising 5.5 per cent to close at $5.39. Shares in Wisetech Global (ASX:WTC) and ARB Corp (ASX:ARB) followed higher.

The worst performing stock in the S&P/ASX 200 was Charter Hall Retail REIT (ASX:CQR), dropping 14.7 per cent to close at $2.96. Shares in Credit Corp ASX:CCP) and Scentre Group (ASX:SCG) followed lower.

Asian markets

Higher: Japan’s Nikkei has added 1.8 per cent, Hong Kong’s Hang Seng has added 0.6 per cent and the Shanghai Composite has almost 1 per cent higher.

Commodities and the dollar

Gold is trading at US$1,626 an ounce.
Iron ore price is 0.7 per cent down at US$86.77.
Iron ore futures are pointing to a rise of 0.4 per cent.
Light crude is US$0.43 up at US$33.22 a barrel.
One Australian dollar is buying 61.06 US cents.