The S&P/ASX 200 Index (ASX: XJO) is up by 2% so far today after yesterday's plunge which saw the biggest one day fall on the ASX since the 1987 stock market crash.
However, despite today's gains, the ASX is very much in bear territory. I believe it is likely that market volatility is going to continue over the next few weeks and possibly months, although hopefully not as extreme as we have been experiencing lately.
Here we take a look at three ASX shares that have seen strong gains today. One aspect that all three companies have in common is that they all are currently experiencing high demand for their products by consumers due to the escalating coronavirus pandemic.
Metcash Limited (ASX: MTS)
Supermarket owner Metcash has seen a massive jump in its share price of 18% so far today (at the time of writing), as Australians race to stock up on food and other essential household items.
The company owns and operates a number of supermarkets across Australia including IGA, Foodland and the Friendly Grocer. Metcash has imposed limits on items that the stores in its network can purchase from its warehouse. Most IGA supermarkets have a one-item-per-person limit on toilet paper.
Woolworths Group Ltd (ASX: WOW)
The share price of Woolworths is up by 9% today at the time of writing, after yesterday announcing that it would restrict the operating hours of its network of supermarkets throughout Australia in order to let staff restock shelves.
As of Wednesday evening, Woolworths will close its stores early at 8pm. Also, as of this morning and until at least Friday, Woolies supermarkets will be opening exclusively for the elderly and those with a disability from 7am to 8am. Customers will be required to show a Government-issued concession card.
Coles Group Ltd (ASX: COL) has implemented similar measures starting from tomorrow. Both supermarkets have already put in place restrictions on the sales of a range of essential items such as toilet paper and hand sanitisers.
Ansell Limited (ASX: ANN)
The Ansell share price has surged by 6% today at the time of writing, driven by the increased demand for its products as the coronavirus outbreak spreads further across Australia.
Ansell produces face masks, protective gloves, respirators and a range of other physical protection devices. Many of these products are being stockpiled, creating shortages in the market. These products are very likely to face extra demand over the next few months.
In Ansell's half-year results for FY 2020 revealed last month, the company announced annual sales growth of 3.9% to US$753.3 million. Meanwhile, earnings before interest and tax (EBIT) was up by 4.8% to US$91.8 million for the half year.
Foolish takeaway
All three of these ASX shares are currently experiencing high demand for their products as consumers stockpile essential goods. This type of demand is quite likely to continue in the weeks and months ahead.
