The Adelaide-based oil and gas giant’s share price fell from $6.70 per share on Friday to $4.89 yesterday before recovering slightly to be $5.10 at noon today.
Santos shares had experienced two major bursts of growth since the beginning of last year – rising to $7.44 in April, and rising again to a peak of $9 on January 15, before tracking downwards to yesterday’s $4.89 low.
The company is among several SA-based firms to lose significant ground over the past one-to-two months.
Others in that category include:
- Fellow major SA-based oil and gas companies Beach Energy – falling to $1.40 at noon from a high of $2.87 in January – and Cooper Energy, down from 62 cents to 44 cents by noon;
- Copper miner Oz Minerals, down from $10.98 in January to $7.93 at noon today;
- Construction materials company Adelaide Brighton Cement, falling to $2.64 at noon;
- Investment firm Argo Investments Limited, falling to $7.76 at noon from a mid-February peak of $9.07, and;
- Information technology firm Codan Limited, falling to $5.94 at noon today.
The Australian Stock Exchange experienced its biggest plunge since the global financial crisis yesterday, falling seven per cent amid concerns about the mounting impact of the COVID-19 coronavirus and an historic drop in oil prices.
The market suffered another major fall at opening this morning after panic selling smashed global equities markets overnight.
The benchmark S&P/ASX200 index was up 106.8 points, or 1.8 per cent, at 5867.4 at noon today after plunging more than 3.5 per cent in the opening minutes of trade this morning.
The broader All Ordinaries index was up 112.9 points, or 1.9 per cent, at 5935.3 as banks and oil stocks gained.
US President Donald Trump today announced details of a stimulus package to help business overcome the virus impact.
This includes payroll tax relief and loans for small business.
His announcement came after stocks on Wall Street plummeted so fast on what traders are now calling “Black Monday” they triggered the first automatic halt in trading in more than two decades.
Premier Steven Marshall said today Cabinet was considering a “very serious stimulus package” to complement a federal package.
Prime Minister Scott Morrison said today he expects the market to respond in a less volatile way when more data is available.
He pointed out coronavirus had a lower death rate than other illnesses such as SARS.
“This has a fixed life, this virus. It will run its course,” said Morrison.
A stimulus package will be delivered this week, he said.
Finance Minister Mathias Cormann told Sky News people should focus on the fundamentals.
“There’s no question that there will be a recovery after we have gone through what unquestionably is going to be a very challenging period,” he said.
“And on the other side there will be a great opportunity for Australians to get ahead.”
The Aussie dollar was buying 66.03 US cents at 10am today, up from 65.46 US cents at the market close on Monday.
– with AAP
We value local independent journalism. We hope you do too.
InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.