S&P/ASX 200 Holding 7k Levels; A Quick look at Top Performers – PNV, ELD, SLR

  • Jan 20, 2020 AEDT
  • Team Kalkine
S&P/ASX 200 Holding 7k Levels; A Quick look at Top Performers – PNV, ELD, SLR

Last week, the S&P/ASX 200 index crossed the 7000 mark, owing to the increase in the prices of stocks belong to different sectors. On the other hand, in the US, the S&P 500 index recently surpassed the 3300 mark for the first time while many of the main US indexes also reached to record high levels. While different companies contributed to index performance, most notable among them was the Google’s parent company Alphabet Inc which recently touched the USD $1 trillion market cap.

The easing of US-China tensions through the recently signed trade deal is one of the major substantial events that have spread the optimism in equity markets all around the globe.

Tariff war between both US-China has surely frustrated the policy makers of both the countries, as a reason of which both the countries are now trying the settle their disagreement. The recently released economic data from China revealed that during the last year, China’s economy grew at its slowest rate in the last thirty years.

While there is still a lot left to discuss between US and China, the global focus is now shifted to US president’s impeachment trial which recently got started. In the coming days, a lot of news flow is expected come out of US which might greatly influence the conditions in the global equity markets.

Now coming back to Australia, where S&P/ASX 200 index recently crossed the 7K mark, many sectors have witnessed good growth, causing the overall index to high.

PolyNovo Limited (ASX: PNV)

Among the health care stocks, one stock which performed exceptionally well on ASX was PolyNovo Limited. In the last five days, the stock rose over 18% and reached very near to its 52 weeks high price. PolyNovo is an Australian based medical device company which develops unique, patented, biodegradable polymers for use in medical devices and has a market cap of around $1.62 billion.

The company recently announced that December 2019 was its first two-million-dollar month and expect an acceleration in sales in the near term. Compared to previous corresponding month, Revenue from NovoSorb BTM sales (unaudited) is 134% higher in December 2019. The company recently released the non-deal roadshow presentation used for Hong Kong and Singapore fund management wherein it highlighted the attributed of its unique platform technology NovoSorb®.

The highlights included in the presentation are mentioned below:

  • Base polymer developed by the CSIRO (Australian Government Research Organisation) with PolyNovo developing the medical devices
  • Unique polymer technology, Carbamate, that is programmable for re-absorbsion rate and product attributes.
  • Excellent biocompatibility, safety and toxicity profile.
  • Biodegrades through hydrolysis and excreted through urine, respiration and macrophage activity.
  • PolyNovo developed the polymer further with foaming process and new formulations

The company expect to release audited financial results on 26 February 2020.

By AEDT 2:25 PM, PNV stock was trading at a price of $2.520, up by 2.857% intraday, with a market cap of around $1.62 billion.

Elders Limited (ASX: ELD)

In the consumer staples sector, the stock of Elders Limited rose over 13% during the last five trading sessions. The company had recently provided an update wherein it assured that despite of bushfires, no Elders property has been damaged, and all branches remain operational.

While providing the update, the company stated that it company expect that livestock agency commissions and farm supplies sales will be negatively impacted in bushfire impacted regions and has informed that in the first quarter of FY2020, its trading was in line with its expectations. At the recently held Annual General Meeting (AGM), the company’s management confirmed that it is on track to meet the second Eight Point Plan’s target of 5-10% growth in underlying earnings throughout the cycles to the end of FY20. Taking a three-year average, the company has ROC (Return on capital) of 22.8% -- well above its target, and with a reasonably optimistic outlook for FY20.

At the time of writing, ELD’s stock price was trading at $7.220, up by 1.69% intraday, with a market cap of around $1.11 billion.

Silver Lake Resources Limited (ASX: SLR)

Silver Lake Resources Limited is among those metal mining companies which performed well last week on ASX and has also started this week on a positive note, by rising over 8% during the mid-day trade today.

The company today has released its December quarter report where it highlight about its strong cash generation and its growth projects which are currently underway. For the December quarter, the company witnessed record production of 68,519 ounces gold and 691 tonnes copper, with sales of 66,074 ounces gold and 694 tonnes copper at an average sale price of A$2,028/oz and AISC of A$1,192/oz.

The company has also increased its FY20 sales guidance to 240,000 - 250,000 ounces gold equivalent at a decreased average AISC range of A$1,300/oz to A$1,350/oz (A$1,375/oz to A$1,450/oz), reflecting increased sales guidance from both operations after incorporating the strong first half results and the continuation of mining at the Daisy Complex in the second half.

At 2:25 AEDT, the stock was trading at a price of $1.525, up by 8.6% intraday, with a market cap of around $1.24 billion.

At the time of writing S&P 200 was at 7,088, up 23.9 points on last close.


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