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The shadow cast by the Coronavirus outbreak in China has been continuously reckoned by the world industry players since the onset of the New Year. However, as one looks at the stock market performance now, the period of eerie ambience plaguing the world market after the epidemic appears to be retreating. If you are one, those active ASX investors, the ASX performance for the past few days would have whole-heatedly placated you to plan your weekend merrily.
ASX performance in the past few days could be your harbinger of joy when S&P/ASX 200 on its fourth consecutive day witnessed continuous growth. S&P/ASX 200 has escalated from 7012.529 points on 10 February 2020 to 7130.2 points on 14 February 2020. The total increase of 1.68% supported through the single day increase of 42.8 points, 32.9 points, 15 points and 27 points is perceived by investors as the reflector of positive share market prospects in Australia.
Source: ASX
However, as one adopts a wide-angled view, the global stock market conditions look grim. At least from the perspective of most of the world markets.
The European Stock market also was seized in the whirlwind of the stock market upheaval on Friday as many stock market indices recorded downfall. On 14 February 2020, FTSE 100 recorded the drop by 42.90 points accounting for dwindling 0.58% in the London based stock market. Similarly, the French CAC 40 and Euro Stoxx 50 on 14 February 2020 dropped by 0.39% and 0.15% respectively.
Rising Coronavirus Cases sends the global stocks tumbling
The extent of infection in China in the current time is used by the investors as the typical reference point guiding the stock market movement. In the past couple of days, the slowdown in the spread of infection was taken as the positive sign by the investors, thereby aiding in the amelioration of the stock market situation. However, the current report published a further rise in the coronavirus cases by over 14000, while the number of deaths was reported to increase by around two-fold.
The growth rate in the confirmed cases has potentially created chaos amidst the rekindling investor’s tranquillity. China which has a robust integrated relation and extensive presence in the trade market, is affected to impact the global market scenario. The investors believe that disruption in the supply chain is likely to affect the supply of raw materials and products to the different industry players across the globe.
Amidst the rising uncertainty, the investors tend to shift to safer securities. The gold price as on 14 February 2020 (10:26 A.M UTC) has increased by 0.01%.
ASX stocks on the rise amidst poor Global stock scenario
Pinnacle Invested Management Group Limited (ASX:PNI) on Friday closed at $6.23, up by 4.706%. The company, with the market capitalization of $1.09 Billion, has been recording share price appreciation since its half-yearly results announcement. In its 1HFY20 report, the group acknowledged the increase in NPAT from $10.1 million to $13.8 million, showing a considerable growth of around 36.6% from the previous corresponding period. Basic EPS for Pinnacle also increased by 32.8%. The financial reports have sent the stock price rising for the company.
Avita Medical Ltd (ASX:AVH) also recorded an increase of 3.822% as the market closed for $0.815. Similarly, the ASX listed Washington H Soul Pattinson & Company Limited (ASX:SOL) with the market capitalization of $5.15 billion witnessed the increase in the stock price by 3.81% as the closing price was recorded to be $22.340 on 14 February 2020.
National Australian Bank (ASX:NAB) that on Friday recorded the growth in its stock price by 3.247% and closed at $27.350. The $78.08 Billion company has reported the increase in its quarterly earnings by 1% whereas its unaudited statutory net profit rose by $1.70 Billion. The rise in the share price could be the reflection of the investor’s sentiments regarding the quarterly performance of the company.
Evolution Mining Limited (ASX:EVN) shares last traded on 14 February 2020 at the closing price of $4.230, showcasing the rise by 3.171%.
Kraft Heinz Co (NASDAQ:KHC) recorded the drop of 3.2% as its closing price reached USD 26.88 on 14 February 2020. Similarly, Cisco (NASDAQ:CSCO) also a single-day decline on Friday by 0.74% as the price dropped to USD 46.97.
Outlook for the Global and ASX Stock
The dwindling of the major US and European Indices sends a red alert signal that investors are strictly regarding the intensity of the Wuhan Coronavirus infection. The existing condition in China owing to its strategic importance in the global trade context would be seriously regarded by the investors. Although the Australian stock market, due to the latest releases has set the stock market afloat in the positive direction, the Australian investors may be affected by the global stock market scenario. The condition of the epidemic and its growth rate not only in China but also in another part of the world holds extreme relevance concerning the stock market scenario. Therefore, the sentiments of the investors at the global level, including that in Australia could be negatively impacted, if the Coronavirus conditions further deteriorate.
