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Australia Market falls on profit booking

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Capital Market
Last Updated : Apr 20 2020 | 11:16 AM IST
The Australian share market stumbled on Monday, 20 April 2020, with almost all of ASX sectors declined, as investors elected to book profit after sharemarket has improved for four consecutive weeks. Around late afternoon, the benchmark S&P/ASX200 index dropped 71.74 points, or 1.31%, to 5,415.80. The broader All Ordinaries fell 70.46 points, or 1.27%, to 5,474.20.

Energy stocks were the hardest hit today as crude oil futures slumped amid concerns over plunging demand because of the coronavirus pandemic. Crude oil was trading around an 18-year low despite last week's OPEC+ cut to oil output. Oil prices fell in the afternoon of Asian trading hours, as U.S. crude futures for May plunged 16.91% to $15.18 per barrel. Meanwhile, international benchmark Brent crude futures also slipped 1.14% to $27.76 per barrel. Santos (STO), Woodside (WPL) and Origin (ORG) were all down by around 3%.

National Australia Bank (NAB) was down 1.1% after it said that its 1H20 profits will take a A$1.1bn hit due in part to customer-related remediation costs, the $742m impact on profit from some software capitalisation changes and a $214m reduction in the value of its investment in MLC Life.

Caltex (CTX) tumbled more than 8% and was one of the worst performers on the market after Canadian company, Alimentation Couche-Tard (ACT) decided to not proceed with its takeover proposal. ACT arrived to that decision 'due to the high level of economic uncertainty caused by the COVID-19 pandemic.

Virgin Australia (VAH) remains suspended from official quotation. The company entered voluntary suspension last Thursday ahead of an announcement regarding its ongoing financial assistance and restructuring alternatives. It is expected to make an announcement at some stage this week.

CURRENCY NEWS: The Australian dollar changed hands at $0.6355 following turbulent trading last week that saw it rising to levels above $0.64 and falling below $0.63.

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First Published: Apr 20 2020 | 11:06 AM IST

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