In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to give back the majority of yesterday’s strong gains. At the time of writing the benchmark index is down 4.4% to 5,059.7 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The Afterpay Ltd (ASX: APT) share price has crashed 20% lower to $15.14. Investors have been selling many of the buy now pay later providers on Wednesday despite there being no news out of them. However, there may be fears that they will face a decline in usage and higher bad debts in the coming months given the uncertainty caused by the coronavirus.
The Kathmandu Holdings Ltd (ASX: KMD) share price has dropped 19% lower to $1.38. Investors have been selling the outdoor and adventure retailer’s shares after it warned that the coronavirus outbreak was likely to have a material adverse impact on its earnings. However, at this stage management advised that it cannot forecast the extent to which COVID-19 will impact the business in the second half.
The Oil Search Limited (ASX: OSH) share price has crashed 11% lower to $2.35. As well as coming under pressure from a sharp decline in oil prices overnight, investors have been selling the energy producer’s shares following the release of an update. That update revealed that the company is suspending or deferring all discretionary activities within its control that have not yet commenced.
The Qantas Airways Limited (ASX: QAN) share price has tumbled 11.5% to $2.53. Investors have been selling off travel and tourism shares again on Wednesday amid concerns over the escalation of the coronavirus outbreak. This morning the Australian Government recommended that the public don’t travel overseas. On Tuesday Qantas cut its international capacity by 90% in response to the collapse in demand.
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As of 17/3/20
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.