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With new COVID-19 cases still on the rise in Victoria, the Australian share market was largely subdued today before succumbing to the Friday rot.
Overnight, only the NASDAQ escaped red on Wall Street as tech stocks continued to rally. Down under, things opened soft and turned sour.
The S&P/ASX 200 kept the worst of the losses at bay for the majority of the day, down by no more than 0.5 per cent until the final hour of trade. However, following the news of 288 new COVID-19 cases in Victoria and the announcement of slashed international flights and quarantine fees by the Australian Government, the index ended the week down by 0.61 per cent at 5919.2 points. This brings the index’s total weekly decline to 2.3 per cent.
After a National Cabinet meeting this morning, Prime Minister Scott Morrison and Victorian Premier Dan Andrews took turns addressing the public. The Prime Minister announced international flights will be halved, meaning 4000 fewer people will be arriving in Australia each week. Returning overseas Australians will need to pay for their own hotel quarantine.
The PM also announced a federal inquiry into the hotel quarantine system. Meanwhile, the Premier urged Melbournians to wear masks when not at home. Dan Andrews reiterated that things will likely get worse before they get better.
In response, the ASX’s losses deepened. Not even the tech sector was able to keep up its rally, declining by 0.75 per cent. Afterpay gave up 1.62 per cent, while WiseTech lost 3.46 per cent. Computershare fell 0.52 per cent while Xero outperformed and closed 1.33 per cent higher.
The heavyweight financials sector fell for the fifth consecutive session despite a mixed result from our big four. Commonwealth Bank managed to put on a light 0.3 per cent, but the win wasn’t enough to offset losses. Westpac, NAB, and ANZ, which each declined by between 1.03 per cent and 1.40 per cent.
Our iron ore and gold stocks moved in the same direction once more today, but this time they each played a part in dragging the materials sector lower. BHP lost 0.74 per cent, Fortescue lost 0.13 per cent, and Rio Tinto lost 0.69 per cent. At the same time, Newcrest lost 1.4 per cent, Northern Star 0.94 per cent, and Evolution 3.01 per cent.
The consumer staples and health care sectors managed to escape red with supermarket giants Woolworths and Coles up 0.79 per cent and 1.43 per cent, respectively, and biotech giant CSL up 0.58 per cent.
It was red, red, red across Asian markets with the Shanghai Composite giving up a nine-session winning run and declining 1.28 per cent. Japan’s Nikkei 225 was 1.06 per cent lower when the ASX closed the for the weekend, with the Asia Dow lower by 1.18 per cent and the Hang Seng by 1.81 per cent.
The Australian dollar is lower, too, currently buying 69.22 US cents, 55.07 pence, and 11.74 South African Rand.
Today’s ups and downs
Crowdsourcing marketplace specialist Freelancer (ASX:FLN) was the top performer after what seems like a delayed reaction to yesterday’s news about an eBay deal with subsidiary Escrow.com. Escrow’s transaction protection tech has been integrated into the eBay Motors website and mobile app. The company’s shares increased by 11 per cent yesterday when the news dropped on the eBay website. Today, FLN shares surged ahead by a whopping 31.31 per cent.
Regenerative medicine company Avita Therapeutics (ASX:AVH) had a tough day after releasing some preliminary fourth-quarter financial data. Sales of the company’s RECELL system were slightly on the rise over the quarter, but the company still posted slight declines in revenue and some steady cash burn. Shares closed 7.51 per cent lower at $7.88 each.
