Coronavirus: Agribusinesses share prices fall on ASX

Coronavirus warnings have spooked the Australian share market, with Select Harvests and a2 Milk falling heavily after making solid gains last week.

Shares have fallen across the board on the Australian Securities Exchange this morning on the back of grim warnings by state Premiers.

THE Australian Securities Exchange’s All Ordinaries Index has plummeted 7.4 per cent in the first half-hour of trading this morning before gaining to a net loss of 6 per cent.

It follows shutdowns of non-essential businesses across the nation and stern warnings by state Premiers earlier this morning about the grim situation facing Australia if the disease is not controlled.

Agribusinesses have not been immune from another stockmarket crash.

Almond producer Select Harvests initially fell 80 cents to $6.50 a share in minutes after ASX trading began, but has since climbed to $6.99, a fall of 4.2 per cent.

Last week, Select Harvests was one of the better performers on the ASX, climbing 37 per cent over the week to close on Friday at $7.30.

This morning, Select Harvest managing director Paul Thompson said all its facilities and the almond harvest would continue to operate.

“They are exempt from the lockdowns and border restrictions recently announced by state and Federal governments,” Mr Thompson said.

“The almond harvest has continued with now 50 per cent of the crop fully harvested and being transported to the Carina West processing facility.

“The yield and quality remain similar to last year.”

Last year’s crop was its best on record, exceeding all previous forecasts.

The biggest ASX-listed agribusiness by market capitalisation, The a2 Milk Company, fell 8.3 per cent in early trading today to $14.83 after ending last Friday at $16.17 a share.

The share price has now climbed to $15.39, a net fall of 4.9 per cent.

One of the few agribusinesses that gained on the ASX this morning is horticultural producer Murray River Organics Group.

Its share price rose 30 per cent to 1.3 cents each but has since slipped back to 1.1 cents.

Four months ago, it was trading at 3.8 cents a share, or three times its current price before getting into financial trouble.

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Murray River Organics Group raised $25 million last month to rescue its finances and last week announced two supply contracts with an unnamed major supermarket worth $15 million over two years.

On Friday, managing director Valentina Tripp announced the company’s chief financial officer Albert Zago was leaving the business.

Another horticultural company, Costa Group Holdings, has suffered an 8.5 per cent fall in its share price this morning.

CGC is now trading at $2.64 a share.

Peter Hemphill’s family has shares in Select Harvests.