Australia Market ends lower after volatile ride

The Australian share market finished volatile session lower on Tuesday, 31 March 2020, as uncertainty over the economic fallout from the coronavirus crisis weighed down investors sentiments. Almost all ASX sectors declined, with shares in consumer staples, healthcare, communications and materials sectors being notable losers. At closing bell, the benchmark S&P/ASX200 index dropped 104.58 points, or 2.02%, to 5,076.80. The broader All Ordinaries declined 83.35 points, or 1.6%, to 5,110.60. For the quarter ended March 2020, S&P/ASX200 index declined 24%.

Sydney market commenced trading with firm footing and rose at 5366 points early in the day, but selling pressure intensified in the afternoon as the market headed to the end of the March quarter.

Shares in consumer staples, healthcare, communications and materials sectors ended in the red. Supermarkets Woolworths and Coles dropped by 8% and 9% each. Wesfarmers sold another 5.2% worth of Coles shares for A$1.06 billion at $15.39/share. Biotech firm, CSL Ltd slid 5% and BHP Group eased 4%.

Financials also reversed earlier improvements to close in negative territory with Commonwealth Bank (CBA) down 3.3%.

Shares in Airline players inclined after Virgin Australia confirmed it is in talks with the Federal Government for a A$1.4 billion bailout due to a prolonged Covid-19 impact. Virgin Australia shares jumped 18.7%. Qantas shares rose by 1%.

Discretionary retailers also improved. Department store Myer rallied 21%. Premier Investments advanced 11%.

CURRENCY: The Aussie dollar managed to inch higher against the greenback to buy 61.85 US cents with strong Chinese PMI data offset by weak local consumer confidence. The AUD is down 5% for the month and has slumped 12% since the start of 2020.

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