The COVID spot fires across at least three states is creating winners and losers on the ASX this morning.
Online ASX shares bolstered by COVID spree
No prizes for guess which camp the Temple & Webster share price sits in. The online homeware retailer surged over 7% to $11.21 at the time of writing.
Never have so many Aussies been confined to their homes since the first outbreak of the pandemic over a year ago.
COVID lockdown and restrictions hit several states
Sydney and Darwin are in a lockdown, while Western Australia, Queensland, the ACT and Victoria have imposed restrictions.
Investors are betting that online retailers will experience another surge in sales from stuck-at-home consumers.
The outperformance of these ASX shares marks a turnaround in sentiment. Many online retailers that surged last year have either returned most, if not all, of their gains.
Supermarkets join the ASX COVID winner’s circle
Another group of winners are the supermarkets. The Woolworths Group Ltd (ASX: WOW) share price gained 2.6% to $37.74 while Coles Group Ltd (ASX: COL) share price increased 0.4% to $16.89. No doubt images of long lines of grocery shoppers on the news is helping fuel this sector.
There are also signs of a flight to safety. ASX shares with defensive earnings are also outrunning the S&P/ASX 200 Index (Index:^AXJO) this morning.
ASX defensive shares back in favour
ASX COVD-losers getting trampled
On the flipside, investors are dumping ASX shares that are seen to be losers from new COVID restrictions.
Precious few will be traveling interstate for the school holidays this time round. And that’s reflected in the 4.6% dive in the Qantas Airways Limited (ASX: QAN) share price.
Get use to the volatility fellow Fools. Until we reach herd immunity (assuming our political leaders can decide what that is), the shutdown/reopening trade will be alive and well!