Tech Retailers Stock Take A Dive After Melbourne Lockdown Lifted
Consumer electronics retailers took a share market dive on Monday after the announcement Melbourne’s 112-day lockdown would finally be lifted.
Investors looked the re-evaluate the CE sector after Dan Andrews revealed restrictions would be eased at 11.59pm Tuesday evening, with stock prices dipping for retailers such as Kogan, Harvey Norman and JB Hi-Fi
E-commerce giant Kogan’s stock fell the most by 6.2%, closing the day at $20.61. Kogan has however had a stellar year so far after share prices jumped from $7.59 in late 2019.
Monday’s announcement also dipped JB Hi-Fi’s stock by 2.6%, closing at $49.51 per share. Share prices for JB have more than doubled since the height of the pandemic in March, increasing dramatically from a YTD low of $23.50.
Meanwhile, Harvey Norman stock prices also eased by 1.7%, closing on Monday at $4.51 a share. The retailer has experienced a similar jump in share market value since early 2020 after it hit a YTD low of $2.46 per share in March.
The CE and home improvement sector have enjoyed an impressive run the last nine months after consumer spending shifted from travel during the pandemic.
However as restrictions in Australia continue to ease and domestic travel reopens, consumers are expected to spend less on online shopping and homeware items.
Bell Potter’s head of institutional sales and trading, Richard Coppleson told The Australian: “It looks like the market has realised that the stocks have got too far ahead of themselves and that the retail spend can’t continue the pace it has been going at.”
Victoria’s reopening will be a critical time for retailers with an expected sales boom now brick-and-mortar stores can accept customers.
Premier Dan Andrews announced retailers and hospitality can reopen from midnight on Wednesday, with more restrictions set to be lifted on November 8.