TheS&P/ASX 200 Index (ASX: XJO) experienced another volatile week with few ASX 200 shares climbing higher. The growing coronavirus pandemic is weighing on investors' minds as markets try to price in the potential economic impact.
Last week I was watching Metcash Limited (ASX: MTS), Nextdc Ltd (ASX: NXT) and Harvey Norman Holdings Limited (ASX: HVN).
Metcash shares edged lower last week, but remain a standout performer amongst ASX 200 shares. The Metcash share price has rocketed 25.91% higher since the start of March, compared to a 24.82% loss for the benchmark index. Nextdc emerged as a potential hedge against the coronavirus crash after climbing 10.01% higher last week, while Harvey Norman closed the week up 5.19%.
As we prepare for another volatile week on the markets, check out the 3 ASX 200 shares that I'll be keeping an eye on.
National Australia Bank Ltd (ASX: NAB)
I'm watching the NAB share price this week given it is down nearly 40% in March. At just $15.12 per share, NAB could be one of those ASX 200 shares that's worth buying at the moment.
Unlike the GFC, this economic crisis is not bank-specific. It is true that the banks' balance sheets could come under strain in the coming weeks. If more businesses fold, that could mean more commercial defaults as well as fewer jobs. We could see that trickle down to further mortgage defaults, but I think the stimulus measures should help reduce some of that burden.
If the stimulus measures work and the economy stabilises in the coming months, NAB shares could an outperforming ASX 200 share.
AGL Energy Limited (ASX: AGL)
The AGL share price has slumped lower in March and is one worth watching. While earnings are likely to be hit in the short-term, I think AGL is still a good business. Despite the ongoing oil price war, east coast gas prices remain high. People still need energy even in a shutdown, and arguably more so with so many people stuck at home.
AGL is one ASX 200 share that's worth watching this week to see how investors price in the pandemic.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price fell 7.25% lower last week but is still down just 4.76% in March. I think Fortescue could be an absolute bargain right now given it is trading at a price-to-earnings ratio of 3.53 times.
Fortescue is a big-name ASX 200 share that is worth watching. If we see Chinese demand continue to grow, that could be enough to keep Fortescue shares climbing higher, despite the current bear market.
