The S&P/ASX 200 Index (ASX: XJO) rebounded strongly today by 5.83% after yesterday recording the second-worst one-day fall on the ASX.
Since February 20, the market has lost well over 30% of its value, meaning that we are very much now in bear market territory. Volatility remains very high in the market and is quite likely to remain for some time to come as investors try to factor in the impact that the coronavirus outbreak will have on both individual companies and on the wider economy.
Despite the broader market climbing higher today, here are two ASX shares that have seen significant falls:
oOh!Media Ltd (ASX: OML)
oOh!media shares closed 16.5% lower today at $1.035. This comes on the back of a 20% fall in its share price yesterday, following a market update on the impact that the coronavirus is having on oOh!media's business operations.
On a positive note, the advertising company reported that overall revenue for the year to date so far has been in line with the performance from the prior corresponding period.
However, the company has withdrawn its full-year FY2020 guidance, noting that the deteriorating wider business conditions and the growing impact of the coronavirus have made forecasting full-year revenue in the current environment difficult.
In addition, as the severity of the impact of the coronavirus worsens, I believe that investors may be growing increasingly concerned about the advertiser's revenue from its out of home segments, especially on public transport. Also, as the crisis deepens, it could potentially impact advertising spending by large corporations.
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel shares closed 3.19% lower today after being down as much as 10.6% in intra-day trade. Today's fall is on top of a heavy 15% drop on Monday.
Other travel shares that have been hit hard in recent weeks include Webjet Limited (ASX: WEB), Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH), as both leisure and business travel is being impacted significantly.
Today, Qantas announced a 90% cut to all of its international flights and a 60% cut to all domestic flights. This reduction will be in place until at least the end of May 2020.
There is no doubt that the coronavirus outbreak has been devastating for our travel and tourism industry. However, on a positive note, Corporate Travel recently revealed that the group has positive net cash and a committed debt facility that is not due to expire until August 2022.
The coronavirus will eventually pass, and I believe that Australia's top travel companies will all bounce back eventually.
