The S&P/ASX 200 Index (ASX: XJO) broke its 4-week winning streak last week and notched a substantial loss for Aussie investors. The ASX 200 had been on a recent tear, rising as much as 20% from its March low point.
But the last 5 trading days saw investors slam on the brakes. By market close on Friday, the ASX 200 had shed 4.44% since the start of the week.
Negative sentiment surrounding the ongoing economic shutdowns necessitated by the coronavirus pandemic was at play. But the most jarring factor spooking investors was arguably the collapse of global oil prices last week.
Oil prices across the board were smashed as low demand combined with oversupply caused a massive glut to become apparent.
Leading the movers (and the headlines) was the performance of the American grade of crude oil known as West Texas Intermediate (WTI). WTI crude futures stunned the world when they went into negative territory last Monday, going as low as -US$40 a barrel at one point.
WTI crude has never gone negative in history, so this event was yet another shocking reminder that we aren't playing in the same sandbox as we were in February.
This effect was quantified as the ASX 200 had its heaviest days of losses for the week last Monday and Tuesday.
Also likely adding to this selling pressure was the first release of Australian superannuation funds under the government's $10,000 allowance in the 2020 financial year. The ATO reported that $3.8 billion worth of funds had been cleared for early release on Tuesday. As a significant portion of Aussie super funds is heavily invested in ASX shares and index funds, a large bout of selling can lead to significant downward pressure on markets.
How did the markets end the week?
Well, as you would have gathered, not too well. The ASX 200 started Monday at 5,486.3 points and finished on Friday at 5,242.6 points – marking the weekly loss at 4.44%. Monday and Tuesday saw the largest falls with a 2.5% loss each day. Wednesday, the market found its bottom (for the week) and eked out a small gain on Thursday and Friday. However, it wasn't enough to stem Monday and Tuesday's losses.
Meanwhile, the ALL ORDINARIES (ASX: XAO) also had a week of red ink, giving investors a 4.2% drop.
Which ASX shares were the biggest winners and losers?
Let's now turn to which ASX shares performed the best and the worst as we ended the week on Friday. First (to get the bad news out of the way), here are the top 5 losers:
Worst ASX losers |
% loss on Friday |
| Nearmap Ltd (ASX: NEA) |
5.95% |
| Lynas Corporation Ltd (ASX: LYC) |
5.52% |
| Challenger Ltd (ASX: CGF) |
5.37% |
| Orocobre Limited (ASX: ORE) |
5.05% |
| Avita Medical Ltd (ASX: AVH) |
4.55% |
Nearmap heads this week's losers with a near 6% drop, which is something shareholders of this aerial mapping technology provider should be used to by now, even though there were no major announcements out of the company to explain the move. Nearmap shares have now lost over 66% of their value over the past year.
Also topping the losers list was lithium miner Lynas, which is perhaps best known for being a failed acquisition target of Wesfarmers Ltd (ASX: WES) last year. However, Lynas' Friday moves were more of a 'coming off the boil' moment after the company's shares jumped nearly 20% earlier in the week. On Wednesday Lynas announced it had been offered a defence contract by the US government, which left investors scrambling for Lynas shares last Thursday.
Also worth a mention this week was private healthcare provider Ramsay Health Care Limited (ASX: RHC). Ramsay shares were down over 7% last week after the company announced its dividend would be suspended in 2020 – breaking a 20-year streak of consistent dividend growth.
Now the losers are out of the way, let's take a look at last week's winners:
Best ASX gainers |
% gain on Friday |
| Southern Cross Media Group Ltd (ASX: SXL) |
13.04% |
| Webjet Limited (ASX: WEB) |
9.65% |
| NRW Holdings Limited (ASX: NWH) |
8.48% |
| Mayne Pharma Group Ltd (ASX: MYX) |
7.04% |
| Corporate Travel Management Ltd (ASX: CTD) |
6.82% |
Southern Cross Media group was Friday's biggest winner, but this appears to be the result of some bargain hunting by ASX investors mid-week when the stock got down to 11 cents. In a wild ride for investors, Southern Cross shares started Monday at 16 cents, went to 11 cents by Wednesday (a 31% slide) and were back up to 13 cents on Friday.
The under-siege travel companies Webjet and Corporate Travel Management were also the beneficiaries of some value buying from investors. Webjet, in particular, got down to a new 4-year low of $2.25 on Thursday before bouncing back up into the green on Friday.
What is this week looking like for the ASX?
After the ASX broke its 4-week winning streak last week, this week looks to be another savage battle between the bears and the bulls for the direction of the market.
The recent trajectory of new coronavirus cases in Australia is very promising, so all eyes will be watching those metrics for some guidance this week (as has become the norm).
In terms of specific ASX shares, Australia and New Zealand Banking Group (ASX: ANZ) will be on watch when it delivers a half-year update on Thursday.
In what will likely be a stark contrast, supermarket giants Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) will also be giving third-quarter sales updates on Wednesday and Thursday, respectively.
And of course, the world will be eyeing the crude oil price a little more than usual this week after last week's high drama.
Before we go, here is how the major ASX blue-chips are looking as we start a new week afresh:
ASX company |
P/E ratio |
Last share price |
52-week high |
52-week low |
| CSL Limited (ASX: CSL) |
44.56 |
$313.75 |
$342.75 |
$189.14 |
| Commonwealth Bank of Australia (ASX: CBA) |
10.68 |
$58.88 |
$91.05 |
$53.44 |
| Westpac Banking Corp (ASX: WBC) |
8.09 |
$15.33 |
$30.05 |
$13.47 |
| National Australia Bank Ltd (ASX: NAB) |
9.06 |
$15.76 |
$30.00 |
$13.20 |
| Australia and New Zealand Banking Group (ASX: ANZ) |
7.52 |
$16.02 |
$29.30 |
$14.10 |
| Woolworths Group Ltd (ASX: WOW) |
17.87 |
$35.89 |
$43.96 |
$30.09 |
| Wesfarmers Ltd (ASX: WES) |
19.01 |
$36.65 |
$47.42 |
$29.75 |
| BHP Group Ltd (ASX: BHP) |
10.33 |
$30.54 |
$42.33 |
$24.05 |
| Rio Tinto Limited (ASX: RIO) |
11.24 |
$87.29 |
$107.79 |
$72.77 |
| Coles Group Ltd (ASX: COL) |
18.16 |
$16.14 |
$18.09 |
$11.76 |
| Telstra Corporation Ltd (ASX: TLS) |
17.59 |
$3.05 |
$3.95 |
$2.87 |
| Transurban Group (ASX: TLC) |
147.13 |
$12.44 |
$16.44 |
$9.10 |
| Sydney Airport Holdings Pty Ltd (ASX: SYD) |
31.02 |
$5.55 |
$9.30 |
$4.37 |
| Newcrest Mining Limited (ASX: NCM) |
24.69 |
$28.53 |
$38.87 |
$20.70 |
| Woodside Petroleum Limited (ASX: WPL) |
34.89 |
$21.36 |
$37.55 |
$14.93 |
| Macquarie Group Ltd (ASX: MQG) |
10.00 |
$95.01 |
$152.35 |
$70.45 |
And finally, here is the lay of the land for some leading market indicators as well:
- S&P/ASX 200 (XJO) at 5,242.6 points
- ALL ORDINARIES (XAO) at 5,300.7 points
- Dow Jones Industrial Average at 23,775.27 points
- Gold (Spot) is swapping hands for US$1,727.05 per troy ounce
- Iron ore is asking US$81.35 a tonne
- Crude oil (Brent) is trading at US$21.44 a barrel
- Crude oil (WTI) is going for US$16.94 a barrel (it seems pertinent to include WTI this week)
- Australian dollar buying 63.85 US cents
Foolish takeaway
The week gone by has, I think, reminded us all that the seemingly impossible is indeed very possible in this Brave New World we are living and investing in. Who would have ever thought that a commodity could have a negative price just last month? As such, I think investors should remain on their toes this week, and take what comes from the markets accordingly.
As always, stay safe, stay rational and stay Foolish!
