- ASX 200 has lost its upside momentum, trading 0.37% lower at 6991.5.
- All 11 sectoral indices are falling from their opening prices with Energy index losing the most, around 1.85%.
- Corporate Travel Management has gained 4.2% to A$19.83 as the company released its market update.
The surging cases of coronavirus across the globe have started to affect equity markets. After reaching a 52-week high of 7094.8 on Monday, the ASX 200 lost its upside momentum today, falling for the second day in a row. As of 10:22 AM AEST, the benchmarked index is trading 0.37% lower at 6991.5, breaking below the 7,000 mark.
Other broader market indices such as ASX 20, ASX 50 and ASX 100 are all trading in the negative territory, losing 0.63%, 0.69% and 0.7%, respectively.
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As the market is falling amid rising concerns over the increasing coronavirus cases across the globe, volatility is coming back. The ASX 200 VIX index has notched up 6.96% to 12.5, depicting fear among investors.
It’s not just the Australian market that is taking the toll, the US market also witnessed selling across the board on Tuesday. The Dow Jones was down by 0.75%, while the S&P 500 lost 0.68%. The NASDAQ shed 0.92%, closing at 13,786.27.
The volatility spike of around 8% was seen in the CBOE VIX index, sending the fear index to the month’s high of 19.7.
Coming to the market breadth, the weakness could be estimated by the fact that no sectoral index was positive for the day (as of 10:22 AM AEST). All 11 sectoral indices are falling from their opening prices with Energy index losing the most, around 1.85%.
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Oil market is becoming jittery over the concerns of the rising coronavirus cases in one of the biggest oil importers in the world, India. If more restrictions are put in place to curb the infection rate, the demand for crude oil would take a heavy toll.
Information technology index is at the second spot among losers, trading with a cut of 1.6%, followed by 1.4% fall in the financial space.
Gainers and Losers
Despite a one-sided falling market, there are a few shares that are holding their ground. The top gainer for the day is Corporate Travel Management Limited (ASX:CTD), gaining 4.2% to A$19.83. The reason for this outperformance is the company’s update, recording net cash of approximately $105 million on 31 March with no debt. The revenues have increased by 64% and underlying EBITDA by 44% as that of against FY19.
On the losing front, Nuix Limited (ASX:NXL) nosedived by 13.8% as the company’s FY21 forecast for annualised contract value reduced to $168 million - $177 million from the earlier estimate of $199.6 million.
Whiteheaven Coal Limited (ASX:WHC) lost 5.5% to A$1.4 as the day is not good for the energy players. Lynas Rare Earths Limited (ASX:LYC) fell 5.4% to A$5.53, taking the number three spot in the top losers.