ASX falls as global virus concerns overshadow NSW scare
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The emergence of a new, more infections, strain of the coronavirus ahead of the holiday season has dealt a blow to any hopes of a Christmas rally for Australian shares.
The S&P/ASX 200 Index fell 70.30 points, or 1.1 per cent, to 6599.6, inflating fears the virus iteration could trigger an increase in restrictions heading into the new year – just as jurisdictions scramble to roll out vaccines.
Positive local news failed to lift the ASX.
Concerns about the consequences for the already-stunted recovery in travel and any economic normalisation pushed oil markets sharply lower overnight. US crude oil fell as much as 6 per cent before recovering to trade near $US47.6 a barrel heading into the local close.
ASX 200 drops over 1%
Tristan Harrison | December 22, 2020 4:33pm |
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6,600 points.
Magellan announced it’s buying a 10% stake in GYG for $86.8 million. GYG is an Australian based quick service restaurant chain specialising in made to order, fresh Mexican food with 147 restaurants across Australia, Singapore, Japan and the US.
GYG is led by founder and CEO Steven Marks as well as chairman Guy Russo, who used to be the CEO of McDonalds as well as Kmart and Target.
Hamish Douglass, the chairman of Magellan, said: “We are extremely pleased to become a shareholder in GYG. Magellan has deep investment experience in the quick service restaurant industry and we believe Magellan can both add and gain considerable insights as a major investor and supportive shareholder. GYG is a world class business with enormous growth potential and represents a highly attractive investment opportunity for our principal investments business.”