With the S&P/ASX 200 Index (INDEXASX: XJO) falling heavily again today, let's examine two ASX shares that experienced particularly sharp falls and take a look at what drove them lower.
Qantas Airways Limited (ASX: QAN)
Qantas shares took a big 8.09% hit today, closing the week 15.37% lower at $4.66. Since 20 February when the market sell-off gained traction, the Qantas share price has plummetted 30%.
Qantas recently announced temporary reductions to flights across Asia due to a growing decline in passenger demand in the wake of the coronavirus. The company cut 16% of Asia capacity until at least May, impacting flights from Australia to mainland China, Hong Kong, and Singapore.
The company has also made reductions of 5% to Qantas and Jetstar flights between Australia and New Zealand. Additionally, Qantas' only route to mainland China (Shanghai) will remain suspended for the same period.
With the coronavirus crisis worsening over the past week as an increasing number of countries experience major cluster outbreaks, it now appears that the impact on Qantas' international passenger demand will go far beyond Asia. As a result, more reductions may well be likely. Domestic travel is also likely to be hit much harder with more confirmed coronavirus cases being reported in major Australian cities.
Qantas is not the only ASX travel share to come under a lot of pressure lately. Other companies in the firing line include Webjet Limited (ASX: WEB), Corporate Travel Management Ltd (ASX: CTD), and Flight Centre Travel Group Ltd (ASX: FLT).
oOh!Media Ltd (ASX: OML)
The oOh!Media share price fell sharply by 11.15% today to close at $2.39 per share. However, this decline doesn't appear to be linked to any recent announcement.
It is quite possible that as the severity of the impact of the coronavirus worsens, investors are growing increasingly concerned about the advertiser's revenue from its out of home segments, especially on public transport. In addition, as the crisis deepens, this could potentially impact advertising spending in general by large corporations.
Before today, however, the oOh!Media share price had been holding up fairly well in the recent market turmoil compared to the broader S&P/ASX 200 Index (INDEXASX: XJO). Perhaps the sell-off has finally come around to oOh!Media shares, so the extreme market volatility could be another reason for today's falls.
In the company's FY19 results released last month, oOh! reported that overall revenues increased marginally by 1% on FY18, while earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 5% to $139 million. In FY20, oOh! anticipates underlying EBITDA to come in between a range of $140 million and $155 million.
