A turbulent week for the ASX

October 30, 2020 - 1 month ago
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A rough day and a turbulent week for the ASX 200, as it posts seven (bearish candles) out of nine consecutive days since the rejection of 6,248 as the Friday’s session, ends in a sea of red to take our local share market to its worst weekly loss in six months.

The index has lost almost -4% since Monday, as investor step back due to the rising COVID-19 infections in the Northern Hemisphere and amid increasing nervousness around the uncertainty of the U.S. election next week.

The benchmark S&P/ASX 200 index rose -1.9% in October, after ending the Friday’s session to a loss of -32.70 points, of -0.55% at the closing bell to 5,927.60, while the broader All Ordinaries sank -34.8 points or -0.56% to 6,133.20 points.

The Financial sector was mixed for the “Fab Four” (banks), with Westpac Banking Corp Bank slipping -0.22% to $17.91, while the National Australia Bank ended flat at $18.60.

Meanwhile, the Commonwealth Bank rose +1.29% to $69.02, while Australia and New Zealand Banking Group added +0.59% to $18.81 even though reporting earlier on Thursday it’s full-year results had dropped -42% in cash profit and Macquarie Group lost -0.85% to $126.75.

Supermarket Coles lost its shine after Thursday’s rally and slipped -1.17% to close at $17.75, while its offsider Woolworth fell -1.65% to $38.16.

Some of the bearish performers over the month included travel stocks, with Flight Centre plummeting -18.2% to $11.26 and Corporate Travel Management down -15.3% to $14.60.

Mesoblast shares sank -39.8% to $3.06 during the month after it reported that the U.S. healthcare regulator, the Food and Drug Administration, had demanded it complete a further randomised controlled study in adults and/or children to provide more evidence of the effectiveness of its acute-Graft Versus Host Disease (a-GVHD) treatment.

Coca-Cola Amatil surged +30.8% to $12.43 after revealing at the start of the week that European bottler Coca-Cola European Partners had made a $9.3 billion bid for the company.

The mining heavyweights were also mixed with titans BHP Group leading the decline by -0.68% to $33.78, while Rio Tinto climbed +1.62% to $92.43 and S32 dropped -0.98 to $2.03.

Fortescue Metal Group, meanwhile, closed higher after yesterday reported a strong quarterly report that featured production and cost figures better than had been expected by the market with its share price, with the session close adding +4.51% to $17.37.

Our gold miners were weaker as the price of spot gold declined, with Newcrest Mining down -0.61%, and Northern Star lost -0.93%, Regis Resources lost -0.72%, Silver Lake lost -2.31%, while Saracen outperformed and closed +0.71% higher.

Also, in the limelight was Link Administration after rallying +27.9% to $4.77 after receiving an offer from a private equity consortium of Carlyle Group and Pacific Equity Partners to access its books on a ”non-exclusive” basis after receiving a revised $5.40 a share offer.

AMP managed to put in a firmer performance and rallied +19.5% to $1.53 on Friday after confirming it has received an indicative, non-binding, conditional offer proposal from Ares Management Corporation.

AMP said discussions were at a “very preliminary stage” and there was no certainty that a transaction would eventuate.

Virgin Money managed to put in a stellar performance and climbed +26.6% to $1.64 and Challenger, advanced +25.6% to $4.81.

Our local currency, the Australian dollar, is currently buying US$0.7055 (as of writing).

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