By now, all ASX investors would (or at least should) know that the S&P/ASX 200 Index (ASX: XJO) has had its worst crash since the GFC in 2008/09.
Shares have been smashed across the board. Blue chips like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: BHP) are at lows not seen in years (or decades in the banks' case).
But there are some ASX shares that investors are seeking refuge in. These names are either immune from the threats of the coronavirus due to their defensive business models, or actually benefitting from the current situation.
Which ASX 200 shares are benefitting from the crash?
The most obvious candidates are the supermarket giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL). These companies have seen an unprecedented increase in sales as consumers panic-buy essential groceries, canned food, cleaning/disinfectant products and (of course) toilet paper. Sales are exceeding even those of the Christmas period last year.
Investors initially sold off Woolies and Coles along with the rest of the market but seem to have cottoned on to what is going on now. Woolworths shares are currently asking $40.07 and Coles hit a new all-time high just today of $18.09.
Even Metcash Limited (ASX: MTS) shares are near their 52-week highs. Metcash owns/operates the IGA chain of grocery stores, which would also be benefitting from the current situation.
Freedom Foods Group Ltd (ASX: FNP) is also a safe haven for investors. Its shares are at $5.35 today after the company reported strong demand for its UHT milk, plant-based milk and cereal products on Tuesday.
Outside the ASX consumer staples sector, investors are also rushing into iron ore miners like Fortescue Metals Group Limited (ASX: FMG). The iron ore price has remained high and is still holding up above US$90 a tonne today. That means strong earnings (and dividends) look set to continue for iron miners like Fortescue.
Are there any opportunities left for safety on the ASX?
I see potential with Transurban Group (ASX: TCL) and Ansell Limited (ASX: ANN) in this current environment.
Toll-road operator Transurban may see a drop in traffic volumes over the next few months, but traffic across our major cities likely return to normal levels after that as work restrictions and lockdowns are lifted.
Ansell is a maker of protective gloves for industrial and medical purposes. I see no reason why demand for these products will fall in this trying time. In fact, I would expect the sales of medical gloves to spike during this health crisis, so Ansell might be another ASX stock to pay interest to today.
