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Why Webjet, BlueScope, and Beach Energy are soaring higher today

The S&P/ASX 200 Index (INDEXASX: XJO) is in the green today after recovering losses in early morning trade. At the time of writing, the ASX 200 Index has climbed by 1.0% to 5,820 points.

Here are three ASX shares that are pushing the ASX 200 higher today after recent days of heavy losses.

Webjet Limited (ASX: WEB)

The Webjet share price is up by 9.2% so far today after posting a big 17% decline on Monday. Yesterday’s drop was on top of some other very heavy falls over the past two weeks due to growing concerns surrounding the coronavirus. With this, travellers and airlines in Australia and worldwide have been cutting down on both domestic and international travel.

In the period from 20 February until trading was opened this morning, the Webjet share price had fallen by a massive 50%. It appears that bargain hunters are now entering the market to take advantage of Webjet’s relatively cheap share price.

I think Webjet shares have been oversold in panic and frenzied selling, so I am not surprised to see a bit of rebound today.

BlueScope Steel Limited (ASX: BSL)

The BlueScope Steel share price has rebounded by 7.96% so far today to $10.31. This follows on from BlueScope’s heavy 14% loss yesterday when the ASX 200 Index fell by over 7%.

Since the start of this ASX market correction, BlueScope shares have lost 26% of its value even when you factor in today’s gains. BlueScope delivered a disappointing set of financial results for the half-year FY20, which hasn’t helped the steel producer.

The company delivered a very sharp 70% decline in reported net profit after tax (NPAT) to $185.8 million. Meanwhile, underlying earnings before interest and tax (EBIT) for the half was also significantly down, coming in 64% lower. These disappointing results came on the back of a decline in commodity steel spreads.

Beach Energy Ltd (ASX: BPT)

Beach Energy has seen a big 9.02% gain so far today as bargain hunters enter the market after a huge 19% sell-off yesterday.

The company was not the only oil producer that saw heavy losses yesterday. Oil Search Limited (ASX: OSH) was the worst performer of them all, falling by 35%. Other ASX oil shares impacted in the frenzied sell-off include Santos Ltd (ASX: STO) and Worley Ltd (ASX: WOR).

Yesterday’s plummet was triggered by oil-producing countries of OPEC plus Russia not being able to come to an agreement on a reduction of oil production. This led to a sharp fall in the global crude oil price by around 30% as Saudi Arabia threatened to flood the market with supply and force prices lower.

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Motley Fool contributor Phil Harpur owns shares of Webjet Ltd. The Motley Fool Australia has recommended Webjet Ltd. 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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