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Virus concerns wipe out ASX gains

The market is looking for more clarity on the results of coronavirus containment efforts in China.

The market needs more clarity on the results of containment efforts in China. Picture: AP
The market needs more clarity on the results of containment efforts in China. Picture: AP

The local stockmarket finished the week on a low note as coronavirus fears dented market sentiment.

After stronger trade on Wall Street overnight on Thursday, the ASX lifted early, but took a sharp turn lower after the US advised its citizens against travelling to China.

By the close, the S&P/ASX 200 was up 9 points, or 0.13 per cent, at 7017.2 after a high of 7046.7 earlier in the session. For the week, the market closed 1 per cent lower.

The All Ordinaries was up 12 points, or 0.18 per cent, at 7121.2.

“The market will need more clarity on the results of containment efforts in China. But the peak in coronavirus cases might be near, and the turning point may not be far away; however, the key will be the spread of the virus slowing each day, so this could be a considerable weekend for risk as the market remains focused on headcount,” AxiCorp chief market strategist Stephen Innes said.

In Asian markets, the Hang Seng bounced by 0.32 per cent, while Japan’s Nikkei was up by 1.1 per cent.

The Aussie dollar was 0.06 per cent weaker against the US dollar, buying US67.18c.

Travel stocks were mixed on Friday, but lower for the week after taking a battering on the virus news, and as analysts warned the local tourism industry was facing a loss of billions of dollars.

Qantas finished Friday’s session lower by 1.7 per cent to $6.41 as it released plans for its evacuation flight of Australians from Wuhan.

Webjet lost 2.2 per cent to $11.75, Flight Centre added 0.4 per cent to $39.31 while Sydney Airport rebounded by 1 per cent to $8.39.

Casino operators lifted after a rough week – Crown put on 0.9 per cent to $11.70 and Star Entertainment added 1.9 per cent to $4.18.

In the major miners, BHP added 1 per cent to $39.40, Fortescue rose by 0.9 per cent to $11.39 but Rio Tinto backtracked by 0.4 per cent to $98.77.

Link Administration was the best performer on the market, adding 9.7 per cent to $6.81 after splurging $322m on a deal for the European operations of Pepper Money.

In the major banks, Commonwealth Bank slipped by 0.2 per cent to $85.26, Westpac gave back 0.8 per cent to $25.12, ANZ lost 0.3 per cent to $25.75 and NAB edged lower by 0.1 per cent to $25.86.

Dual-listed ResMed added 3 per cent to $25.05 after a beat on its earnings, while fellow health heavyweight CSL added a more moderate 0.5 per cent to $312.05.

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Original URL: https://www.theaustralian.com.au/business/markets/virus-concerns-wipe-out-gains/news-story/b766e78e3fb05dafb6db10a78fb8884e