The S&P/ASX 200 Index (ASX: XJO) dropped 2.5% today to 5,818 points.
Investors are becoming more fearful about the spread of COVID-19 again. The S&P 500 (INX) fell by 2.6% overnight and the ASX generally follows what international share markets do in the short-term.
ASX travel shares and banks sell off
Some of the ASX 200 shares that are most at risk of another COVID-19 uncontrolled outbreak were the ones that fell the most today.
The share price of Flight Centre Travel Group Ltd (ASX: FLT) fell by 11%.
Webjet Limited (ASX: WEB) suffered a share price decline of 8.6%.
The Corporate Travel Management Ltd (ASX: CTD) share price dropped 8%.
It wasn't just ASX 200 travel shares that declined today.
The Commonwealth Bank of Australia (ASX: CBA) share price fell 2.3%, the Westpac Banking Corp (ASX: WBC) share price dropped 3.5%, the Australia and New Zealand Banking Group (ASX: ANZ) share price declined 3.1% and the National Australia Bank Ltd (ASX: NAB) share price dropped 3.5%.
CSL Limited's (ASX: CSL) deal
Healthcare leader CSL announced it is going to acquire the exclusive global license rights to commercialise an adeno-associated virus (AAV) gene therapy program called AMT-061 for the treatment of haemophilia B. The AMT-061 program, currently in phase 3 clinical trials, could be one of the first gene therapies to provide potential long-term benefits to patients with haemophilia B.
If AMT-061 is successful, appropriate candidate haemophilia B patients would be able to have a one-time treatment to restore factor IX plasma level activity to functional levels capable of eliminating the need for frequent and ongoing replacement therapies.
The ASX 200 business will start with an upfront US$450 million payment to uniQure followed by regulatory and commercial sales milestone payments and royalties.
Qantas Airways Limited (ASX: QAN) turnaround plan
Qantas has announced a $1.9 billion capital raising to help the business remain financially strong during the next three years.
It is looking to raise approximately $1.4 billion in a fully underwritten institutional placement and up to $500 million in a non-underwritten share purchase plan. The placement price is $3.65 per share, which is a 12.9% discount to the last traded price. The new shares represent a 25% increase to the total shares on issue.
Qantas unveiled a plan that is targeting $15 billion of lower costs over three years in line with reduced flying activity including fuel consumption savings. It hopes to achieve $1 billion per annum of ongoing cost savings from FY23 with productivity improvements.
The ASX 200 airline is going to cut 6,000 jobs across all parts of the business. It will continue to stand down 15,000 employees, particularly those associated with international operations. It will also ground up to 100 of its aircraft for up to 12 months (or more). Some leased aircraft may be returned as they fall due.
The cost of implementing this plan is expected to cost $1 billion with most of it realised during FY21.
Bapcor Ltd (ASX: BAP) reports large growth
Bapcor announced it has seen a large amount of sales growth for two of its main divisions.
The ASX 200 auto parts business said its retail segment experienced strong demand in May and June with Autobarn same store sales increasing over 45% from the prior year. On a full year basis to the end of June 2020, it is estimated that Autobarn same store sales will increase by approximately 8%.
Burson Trade has also experienced strong demand in May and June with same store sales growth to be up approximately 10%. On a full year basis, Burson same store sales growth is expected to be around 5%.
Bapcor's segments that suffered most heavily due to COVID-19 were New Zealand, specialist wholesale and Thailand. These segments are also recovering.
Management is now experiencing net profit after tax (before significant items) for FY20 to be in the range of $84 million to $88 million.
