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The deadly scenes from the ghastly movie seem to be unfolding as the graveness of the current calamity touches another surpassing level day by day. What once began as the meagre flu-like symptoms in the city of Wuhan soon assumed the shape of the deadly pandemic affecting myriads of people all across the world. The flights are cancelled, and the ports being locked down, the world members no longer remain interconnected amidst the burgeoning culture of social distancing during the time of coronavirus.
IMF Chief Kristalina Georgieva has hinted towards world heading towards 2008 like financial crisis.
The situation report of WHO on 27 March 2020 pointed at the worsening global health condition as the number of cases grew by 46,484 in the past 24 hours, taking the total world count of infection to above 500k. The mortality rate due to the epidemic worsens with each passing day, and the total death toll due to Covid-19 reached 23,335 as 2501 number of deaths were reported on a single day.
The charts demonstrating the crashing stock market movement bears witness to the financial havoc that the novel coronavirus has played in the world market. S&P/ASX 200 dwindled by points, taking the total downfall by over 30% between 31 January 2020 to 27 March 2020. Likewise, different sectors seem to be struggling as the business operations shut down, and the supply chain faces massive disruptions.
As you find yourself scanning for the stocks to fuel your hope and returns amidst the existing situation, let us look at the few stocks that are sending waves of good news amidst the current market turmoil and ended the week (27 March 2020) on a positive note.
ALS is a leader in providing inspection and laboratory testing along with the certification and verification solutions across the plethora of the industries ranging from aerospace and defence to agriculture, construction, consumer goods, exploration, pharmaceuticals, etc.
As per recent market update, the company has a strong balance sheet for managing the detrimental impact of Covid-19. The leverage ratio within the debt covenant of 3.25 times close to the 31 March year-end lies in-line with that of the previous reporting periods. The strong liquidity position of the company as well as sufficient cash availability typically strengthen its financial position amidst the volatile scenario.
ALQ stock having the market capitalisation of $2.47 billion closed at $5.390 on 27 March 2020, up by 5.48%. The shares rose by over 16% between 24 March to 27 March 2020.
Operating in the supply chain industry providing innovative technologies to the logistics players, Wisetech Global Limited (ASX:WTC) realised price appreciation by over 38% in the year 2019 as its share price rose from $16.90 on 31 December 2018 to $23.370 on 31 December 2019. The company has its operational presence in more than 150 countries with over 15,000 logistics organisations utilising the services of the Wisetech Global.
The company showed significant revenue growth as the revenue increased by 31% in 1H20 compared to 1H19. With the EBITDA rising by 29% from the previous reporting period, the company noted CAGR of 43% over four years (1H16-1H20).
WTC stock garnered positive momentum in the last two trading days of the week as the share price appreciated by around 15.9%. On 27 March 2020, the stock rose by 5.072% intraday as it closed at $14.50 per share.
With its operations centric to the motor vehicle accessories along with the works related to light metal engineering, ARB Corporation (ASX:ARB) has its segments across different world regions such as Australia, Europe, USA, Middle East and Thailand.
The Half-yearly report of the company ending 31 December 2019 highlighted that the company’s sales revenue increased by 7.3% while its net profit decreased by 7.4%. There was no change in the interim dividend distributed in 1H20 compared to the previous reporting period.
ARB shares rallied in the last two days between 25 March to 27 March 2020 by over 21%. The stock price increased by 4.826% on 27 March 2020 and closed at $13.250.
Aurizon Holdings Limited (ASX:AZJ)
Australian rail freight operator, Aurizon Holdings Limited (ASX:AZJ) engages in delivering integrated freight and logistics solutions across the international as well as domestic markets.
Compared to the 1H19 results, the Group EBIT rose by 12% while its statutory NPAT grew by 51% in 1H20. Moreover, the market buyback also increased from $100 million in 1H19 to $400 million in 1H20. The company declared the dividend of 13.7 cents per share, which saw the rise by 20% from the previous reporting period.
AZJ stock amidst the turbulent scenario showed positive performance as the share price consistently escalated by over 17% from 20 March to 25 March 2020. While the stock showed slight slump on 26 March, it was able to regain the losses as it rose by 4.255% intraday on the next day. By the end of the trading session on 27 March 2020, AZJ share closed at $4.410 per share, up by 4.255% intraday.
Bottomline
The market rally during three days of the week brought some positive hope to the stock market which in the current scenario stands perplexed by the radiating wave of uncertainty that surrounds the market. While some stocks basked in the positive momentum, nothing concrete finalisation pertaining to the market movement can be commented, given the ongoing pace of the pandemic. At present as the varying federal measures are undertaken to sustain the economy, the uncertainty and the wavering sentiments of the investors is expected to be largely driven by the state of the medical emergency. The market stabilisation would largely depend upon the duration in which the epidemic subsides and the pace at which the business operations are resumed.
