Key points
- The ASX 200 has fallen more than 8% since the beginning of the year
- Investors might be seeking out investments capable of performing during a market downturn
- Three Australian companies not only stayed out of the red, but moved higher during the last market crash
The S&P/ASX 200 Index (ASX: XJO) moved closer towards the official definition of a 'correction' on Tuesday. Meaning the benchmark index has fallen almost 10% from its recent high, erasing all of the ground covered since May 2021.
Unsurprisingly, many investors are seeking out areas of the market that might have a better chance of holding up during more turbulent times. This may include companies with strong balance sheets, existing profitability, and a proven track record during difficult operating environments.
The COVID-19 crash of 2020 might serve as a good reference point to evaluate which ASX 200 shares have demonstrated their staying power.
Here are the three ASX 200 shares that handled the last ASX share market crash exceptionally well.
These ASX 200 shares have held steady in the past
Before we jump into the list, we need our point of reference. In this case, it is how the ASX 200 performed during the COVID-19 crash in 2020. Between 14 February and 23 March 2020, the benchmark index plummeted an unsettling 36.2%.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
One ASX 200 share that was able to avoid the nasty sting of the pandemic was respiratory care product manufacturer, Fisher & Paykel Healthcare. Rather than setting new 52-week lows during this time, the ventilator maker was setting new 52-week highs.
Fortunately for Fisher & Paykel, the pandemic hinted at the potential for an increase in demand for its medical-grade respiratory products. This was confirmed by the company with an update in March 2022 whereby Fisher & Paykel noted its products were "directly involved in treating patients with coronavirus". In the same update, the company revised its revenue and earnings expectations higher.
These factors, when combined, were accompanied by a positive reaction from investors. In contrast to the despair painted in red by the ASX 200, the Fisher & Paykel share price rallied 12.1% throughout the market crash.
Metcash Limited (ASX: MTS)
Metcash is another company featured in the ASX 200 that averted losses during the COVID-19 market crash. The grocery, hardware, and liquor conglomerate benefitted from a flight to staples as the economy weakened. However, no official announcements were released by Metcash during the timing of the broader market crash.
The Metcash share price pushed 19.6% higher during the brief stint of elevated fear for investors. The company has gone on to deliver further gains for its shareholders. This has been fuelled by increased profitability and growing revenue across the business.
Analysts at Ord Minnett recently tagged Metcash with a buy rating and a $5 price target — suggesting a further 23% upside.
Chalice Mining Ltd (ASX: CHN)
The final ASX 200 share on the list was the best performing through the dizzying ride to the downside of 2020. The mineral exploration company, Chalice Mining, flourished for its shareholders while the rest of the market floundered.
A handful of announcements were published by Chalice during the February to March period of 2020. Perhaps most important were the findings at the Julimar Project in Western Australia. Posted at the peak of the market crash, Chalice Mining pulled back the curtain on its first drill hole at the promising nickel-copper-palladium project. This would mark the first of many positive results to come from Julimar.
In turn, the Chalice Mining share price soared 26.7% during the five-week stint of market mayhem.
