Virus crisis has winners
THE coronavirus pandemic hurt businesses as restrictions to check the spread of COVID-19 resulted in widespread loss of revenue, job cuts and closures.
But some Asx-listed companies have managed to gain advantage amid the chaos.
On February 24, $60 billion was wiped from the value of the Australian stock market as investors fully grasped the economic threat of the pandemic. It was the market’s worst day in six months and the start of a lengthy slide for stocks.
The giant sell-off continued until March 23, when the market hits its lowest point.
While most businesses have resumed trading, the pandemic continues to pose challenges.
The S&P/ASX 200 benchmark index lost more than a third of its value at the height of the crisis and is still down more than 16 per cent. But some Asx-listed stocks have recovered better than most.
Online retailer Kogan.com has reported a doubling of sales in April and May even as lockdowns restricted activity in the rest of the retail sector.
Its shares closed at $13.15 yesterday, up about 150 per cent since February 24.
Burman Invest chief investment officer Julia Lee said Kogan was one of the beneficiaries of an accelerated shift towards online spending.
Without bricks and mortar stores, it did not suffer in the way that Myer or Premier In
THE NSW Government has recommended a controversial coal seam gas project in the state’s northwest be approved with strict conditions.
The NSW Department of Planning, Industry and Environment yesterday recommended its approval of the Narrabri coal seam gas project and referred it to the Independent Planning Commission for final assessment. vestments did during the pandemic, she said.
Buy-now, pay-later provider Zip Co, like larger rival Afterpay, has seen a jump in users as online shopping has boomed.
Its share price is up about 90 per cent since the crisis began, closing at $6.30.
CMC Markets chief strategist Michael Mccarthy believed a key factor helping Zip Co’s returns was that prior to the virus, many people viewed it as a latecomer to the payments space.
Pushpay provides software to help churches collect donations, particularly useful during the pandemic.
It’s up more than 60 per cent, closing at $6.80 yesterday, but Mr Mccarthy warns the rise is a product of crowd behaviour rather than business fundamentals.
Australian Ethical Investment has been garnering interest for the past few years over its investment philosophy of putting members’ funds into causes such as renewable en
Oil and gas giant Santos has proposed the $3.6 billion project over 95,000 hectares in the Pilliga forest and nearby grazing land.
It involves drilling 850 new gas wells over 20 years, with Santos saying it has the potential to satisfy up to half of NSW’S natural gas demand.
The department yesterday found the project would not adversely affect the region’s valuable ergy and avoiding companies that exploit workers or animals.
The recent push for greater attention on environmental, social and governance issues has received a boost from the COVID-19 crisis, pushing AEI’S share price up about 50 per cent to $5.60.
And Australian biotech firm Mesoblast has been in the spotlight for its trials of a COVID-19 treatment, making strong gains over past months and closing at $3.60 yesterday. groundwater resources and could be designed to minimise any impacts. In recommending it for approval, the department added the project was “unlikely” to result in any significant impacts on the community or environment.
“The department has concluded that the project is in the public interest and is approvable subject to strict conditions,” the DPIE said in its report.