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ASX 200 rises, coronavirus fears continue

ASX 200
Credit: Cimexus

The ASX 200 (INDEXASX: XJO) managed to rise today on the back of the US market going up.

Australia’s share market often follows the market reaction in the US. In the United States Joe Biden managed to win more states than Bernie Sanders on ‘Super Tuesday’ after a number of moderates dropped out and all backed Mr Biden.

The ASX 200 rose 1.1% in response. The market was driven by shares like CSL Limited (ASX: CSL) going up by 3.25% and Macquarie Group Ltd (ASX: MQG) rising by 3.5%.

But the US wasn’t the only thing to cause the ASX share market to rise:

More good news for TPG Telecom Ltd (ASX: TPM) 

There were two good pieces of news regarding TPG today.

The first is that the ACCC announced that it won’t appeal the TPG-Vodafone merger decision because it would the ACCC to establish an error of law by the judge.

It also reported its result for the half-year to 31 January 2020. Its statutory profit grew 206% because of the impairment in the prior corresponding period. However, business as usual (BAU) earnings before interest, tax, depreciation and amortisation (EBITDA) was down 5% to $404.2 million.

But, pleasingly, the telco increased its BAU EBITDA FY20 guidance to a range of $775 million to $785 million, up from $735 million to $750 million.

Share buying causes rises

Some buying supported the shares prices of two of the biggest ASX 200 gainers today. The Elders Ltd (ASX: ELD) share price gained 8.5% with investment fund business Perpetual Limited (ASX: PPT) increasing its stake to over 10%.

Share buying by the Chairman of Graincorp Ltd (ASX: GNC) caused the share price to rise 5.8%, he bought over 15,000 shares over the past week or so.

Australian blocks South Korea travellers

Foreign citizens wanting to travel from South Korea to Australia will not be able to because of the fears surrounding the ongoing coronavirus.

Whilst some travel shares were unaffected, others saw noticeable declines. The share price of Sydney Airport Holdings Pty Ltd (ASX: SYD) fell 2.1%, the share price of Flight Centre Travel Group Ltd (ASX: FLT) dropped 5% and the share price of Corporate Travel Management Ltd (ASX: CTD) declined 6.8%.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited, Macquarie Group Limited, and Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Elders Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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