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While we remain quarantined wondering what propelled nature to confine us all within the walls of our home, the World Health Organization (WHO) has revealed that as on 24 March 2020, there are over 334 k confirmed cases, more than 14 k confirmed deaths and 190 countries that have fallen prey to a new pandemic, the first of this decade- the deadly coronavirus (COVID-19).
Do these figures scare you? If yes, they ought to- so let us remain isolated for a while and wash our hands! If no- well, we request you to click the below link and update yourself on the crisis that the globe is facing, which, if not contained, can wreak havoc upon mankind.
Coronavirus Crushes Hopes For Stronger Global Economic Growth
But not everything around is worrisome. Consider the below-
- A John Hopkins research study states that, globally, there have been over 101k recoveries of virus-inflicted patients.
- ASX-listed Marley Spoon AG (ASX:MMM) recently reported an increase in the sales and delivery of in-demand meal kits in all its markets, owing to the COVID-19 outbreak wherein economies are taking war time measures of lockdowns.
- NZ-based Zoono Group Limited (ASX:ZNO) has received results from a study demonstrating that Z-71 Microbe Shield of the Company was over 99.99 per cent effective against COVOID-19.
- Governments across the world are introducing fiscal policies to help regions fight against the crisis situation. For instance, Australia’s Morrison Government has recently injected $ 189 billion in order to keep Australians in work and businesses in business.
As inferred, the pandemic is a serious catastrophe that needs immediate actions. And, the world has shown appreciable unity, as we fight the COVID-19 war as a global family.
Moving on, we wish to highlight on a few developments that have taken place in Australia’s consumer discretionary sector amid the pandemic situation. Two stocks, that we will discuss further, traded in green on the ASX on 24 March 2020, depicting that investors might be regaining confidence at the back of all that is being done to rectify the coronavirus repercussions.
Let’s deep dive!
Crown Resorts Amends Business Operations Amid Pandemic, Stock Up ~6%
One of Australia’s largest entertainment groups, Crown Resorts Limited (ASX:CWN) makes a major contribution to the Australian economy via its role in tourism, employment, training, and corporate responsibility programs.
The Company has been implementing changes required to curb the coronavirus spread that are mandated primarily by the Western Australian and Victorian governments (social distancing policy, provision of alcohol-based hand sanitiser and more frequent and strengthened cleaning measures).
More recently, CWN announced the closure of all non-essential businesses after statements were issued by the Commonwealth and relevant State Governments pertaining to the anti-COVID 19 measures. Subsequently, the Crown Melbourne and Crown Perth entertainment complexes will not be allowing gaming activities, food & beverage, banqueting and conference facilities (with the exception of takeaway meals or meal delivery services, where determined).
In the UK, Crown Aspinalls has also ceased operations. However, hotel accommodation will continue to be provided, though in a reduced capacity.
The Company has been assessing all elements of the changes to business operations, including the financial impact. Investors noticeably developed a positive sentiment towards the stock, which was up by 5.8 per cent on 24 March 2020 at $ 6.48.
SkyCity Closes Adelaide Casino & Withdraws Guidance; Adelaide Expansion Project to Continue- Stock Soared ~15%
NZ’s largest tourism, leisure and entertainment company with an iconic status, SkyCity Entertainment Group Limited (ASX:SKC) is a major publicly listed casino operator in Australasia.
The Company acknowledges the fact that the tourism and leisure industry has been negatively impacted by the global response to COVID-19. Last week, the Group anticipated that impacts would intensify, given social distancing requirements, new border controls, and restrictions on mass gatherings imposed in ANZ (Australia and New Zealand).
More recently, SKC announced the closure of the Adelaide Casino in order to combat the spread of COVID-19, following the Australian Government’s norm to close all licensed clubs, pubs, cinemas, casinos, nightclubs and places of worship from 23 March 2020. Subsequently, the Company withdrew its updated earnings guidance for the year ending 30 June 2020 (which was released last week).
Moreover, SKC’s NZ casino and entertainment facilities in Hamilton, Queenstown and Auckland were also closed after the NZ government showed its intent to upgrade the COVID 19 Alert Level to Level 4.
However, not all signs are bleak- the Auckland hotels will remain temporarily open to accommodate guests staying in-house. Furthermore, closure requirements do not apply to construction sites, which means that the Company will continue work on its Adelaide expansion project.
As the Company thrives to focus on addressing the welfare of its employees while respecting Government orders and continuing work where possible, investors noticeably persuaded the stock on 24 March 2020. It soared by 14.63 per cent and quoted $ 1.41 at the end of the day.
It can be inferred that even when millions of us are told to stay at home and social distancing is becoming the new way to safeguard the world, the role of international organisations, medical science and Governments across the world has been put to test. There have been positive developments to make things better, though a lot more still remains to be done.
Businesses are thriving to keep nervous investors calm, and this might be getting successful. We say so because post market close on 24 March 2020, the benchmark S&P/ASX 200 was up by 4.17 per cent or 189.7 basis points at 4735.7.
While we await the pandemic to be over and get back on track with normalcy- why not give the below a read, and share it with your acquaintances?
Ray of Hope amid Coronavirus Pandemic- Positive News during the Scare
