Live ASX News Today
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27th Aug 06:21 PM AEST
ASX ends flat as Jackson Hole, Afghanistan worries weigh; Clinuvel Pharma, NUIX lead gain
Australian share market ended lower for the second straight session on Friday as investors awaited speech by Fed Chair Jerome Powell at Jackson Hole later in the day. The comment by US Fed officials to speed up the tapering of economic stimulus, ahead of highly anticipated annual economic symposium, also left investors jittery. Adding to it, mixed corporate earnings and deadly attack in Afghanistan also spooked market sentiment. Some major companies such as Wesfarmers, Lynas Corporation, Resolute Mining, BWX, NEXTDC and Mayne Pharma announced their earnings report this morning.
The?ASX200? closed marginally lower by 2.90 points at 7,488.30, led by selling in consumer discretionary and tech stocks. During the day’s trade, the index declined as much as 0.35% to hit an intraday low of 7,465.
Overall, the ASX 200 settled the week with 0.37% gain, led by sustained buying across energy, tech, material and financial stocks.
The market breadth, indicating the overall strength of the market, was mixed as five of 11 sectors ended in red zone. The consumer discretionary sector emerged as the worst performer with 1.8% loss, followed by tech, which dropped 1.2%. Among others, telecom, materials and consumer staples also settled lower.
Meanwhile, industrial sector topped the gainers’ chart with 0.96% gain. Health care and utilities sectors also closed higher with decent gains.
Biopharmaceutical firm Clinuvel Pharmaceuticals (ASX:CUV) topped the gainer list by rising 17.5%. Investors gave thumbs up to FY21 earnings as net profit after tax rose to AU$24.7 million, while revenue and other income surged to AU$48.5 million. In FY21, Clinuvel recorded its fifth consecutive year of positive cashflow, revenues and profit.
Some of the other notable gainers were toll roads developer Atlas Arteria (ASX: ALX), natural health company Blackmores (ASX: BKL), software firm NUIX (ASX: NXL) and logistics service provider Qube Holdings (ASX: QUB).
On the flip side, Pilbara Minerals (ASX: PLS) emerged as top loser with 7% loss. Some of the other top laggards were minerals explorer Orocobre (ASX: ORE), tech firm Appen (ASX: APX), data centre operator NEXTDC (ASX:NXT), and technology firm Megaport (ASX:MP1).
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27th Aug 03:04 PM AEST
NEXTDC (ASX:NXT) posts revenue growth of 23%, earnings up 29%
ASX 100-listed technology company NEXTDC Limited (ASX:NXT) today announced its financial results for the financial year ended 30 June 2021 (FY21).
According to the data centre services revenue grew AU$45.3 million, 23% to AU$246.1 million.
The underlying EBITDA rose AU$29.9 million to touch AU$134.5 million.
The Company’s operating cash flow is up AU$79.5 million to AU$133.2 million.
NEXTDC shared its capital expenditure is down AU$116 million to AU$301 million.
As on 30 June 2021, the Company registered a liquidity of AU$1.7 billion.
The stock NXT was spotted trading 4.637% down at AU$12.855 per share at 2:50 PM AEST.
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27th Aug 01:11 PM AEST
Truck drivers' strike to affect supply of essential commodities in Australia
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In what could mean disruptions and scarcity of necessities such as food and fuel for some consumers, close to 7,000 truck drivers in Australia are on strike today. The truck drivers employed by one of the country's largest transport firms are members of the Transport Workers Union (TWU).
Today's strike was called after the ongoing negotiations between the logistics giant and the truck driver on the new enterprise bargaining agreement failed to reach a consensus. Noticeably, the new enterprise bargaining agreement determines pay and working conditions.
The main point of contention is also the percentage pay rise and job security. Toll, one of Australia's largest toll companies, has offered a 2% increase in pay for the next two years along with AU$1,000 sign-on bonus after the workers decided to surrender a pay rise last year due to the coronavirus pandemic.
However, the Transport Workers' Union, representing the workers, is demanding a 3% pay rise and job security. The negotiations failed to placate the workers union because the logistics company is willing to cut overtime for the permanent employees and instead use workers and short-term contractors on lower wages.
Australia is reeling under the burden of a daily surge in COVID-19 cases and is already chaotic. There are speculations that the country could see more such strikes by truck drivers as negotiations on enterprise bargaining agreements continue across the transport industry. However, the TWU has assured that the strike would not impact the supply of vaccines and essential medical requirements.
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27th Aug 01:09 PM AEST
Waypoint REIT (ASX:WPR) records 5.4% growth in distributable EPS in H1-21
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Freehold property owner and leaser Waypoint REIT (ASX:WPR) announced its results for the half-year ended 30 June 2021 (H1-21).
WPR has delivered a solid H1-21 result with a 5.4% increase in distributable earnings per security. The growth is attributable to contracted rental appreciations and a 10.4% increase in net tangible assets per security. WPR has witnessed an AU$189.8 million gross valuation uplift across its’ portfolio.
It settled 37 non-core asset sales for a combined price of AU$132.0 million, at a premium of 10.8% to carrying value. Gearing as of June 2021 was 27.3%, below the bottom end of WPR’s target range. WPR also proposed a few capital management initiatives totalling $150 million, including an AU$75 million buyback initiated on 30 July 2021.
As of now, WPR’s management expense ratio of 26bp remains one of the lowest in the S&P/ASX 200 REIT Index.
WPR shares were spotted trading 0.740% up at AU$2.720 per share at 1:00 PM AEST.
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27th Aug 01:08 PM AEST
BWX enters into partnership with Go-To Skincare
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BWX Limited (ASX:BWX) today announced that it has acquired a 50.1% interest in Go-To, one of Australia’s leading omnichannel skin care brands for approximately AU$89 million.
The Partnership values Go-To on a 100% EV basis at AU$177 million.
Go-To is an Australian firm dedicated to skin care and has a spread of skin care products. In FY21, the Company generated AU$36.8 million of revenue and AU$11.6 million of EBITDA.
Also, the Company announced its financial results for the full year ending 30 June 2021.
The Group revenue rose 8.6% to AU$203.9 million on a constant currency basis. The Net revenue, as per the Company has risen due to robust sales volumes reflecting recovery in some regions from pandemic conditions.
The Group, as per the announcement, delivered an underlying EBITDA growth of 11.5% to AU$34.5 million followed by a rise in statutory NPAT of 60.9% to AU$23.7 million. The gross margin improved 134bps to 59.3% in the given period.
BWX shared that it has ended the financial year with a solid cash position of AU$70.5 million and an improved net debt position of AU$52.4 million as on 30 June 2021.
The stock BWX was spotted trading at AU$5.310 per share at 1:00 PM AEST on Friday.
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27th Aug 12:38 PM AEST
ASX edges lower; Pilbara, Appen, Lynas Rare Earths lead fall
Australian shares continued to trade lower by afternoon, albeit paring half of early losses, as caution prevailed in the market ahead of meeting of global central bankers later today. The escalated geo-political tensions following terror attack in Afghanistan and persistent COVID-19 concerns also left investors jittery. Investors also reacted to corporate earnings report of some big companies such as Lynas Corporation, Resolute Mining, Wesfarmers, BWX, Mayne Pharma, Cleanspace, TasFoods, NEXTDC and others.
The ASX 200 was trading 10.10 points or 0.13% lower at 7,481.10 by lunch. Earlier today, the index opened lower for the second session and declined as much as 0.35% to hit a low of 7,465.
On the sectoral front, seven of the eleven sectors were trading in red zone. The information technology sector was the worst performer with 1.35% loss, followed by consumer discretionary and telecom, which dropped nearly 1%. Among others, material, consumer staples, energy and financial also witnessed surge in selling activity.
Meanwhile, health care sector was the best performer, rising 0.6% by lunchtime. Industrial, utilities and A-REIT were also trading higher with modest gain.
Metal and mining company Pilbara Minerals (ASX: PLS) topped the losers’ chart with 7.5 loss. Some of the other worst performers were minerals explorer Orocobre (ASX: ORE), tech firm Appen (ASX: APX), data centre operator NEXTDC (ASX:NXT), mining firm Lynas Rare Earths (ASX:LYC).
Meanwhile, global biopharmaceutical firm Clinuvel Pharmaceuticals (ASX:CUV) was the top gainer on the ASX pack, rising nearly 12%. Some of the other notable gainers include financial services firm IOOF Holdings (ASX:IFL), toll roads developer Atlas Arteria (ASX: ALX), logistics service provider Qube Holdings (ASX: QUB) and natural health company Blackmores (ASX: BKL).
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27th Aug 12:37 PM AEST
Payright (ASX:PYR) customer number up 58%, merchant stores go up 41%
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The ASX-listed buy now pay later (BNPL) firm, Payright Limited (ASX:PYR), has released its full-year results for the year ending 30 June 2021 (FY21) that showcased record-breaking achievements by the Company across all key metric financials.
Key highlights:
- PYR has recorded AU$12.2 million in income, up by 24% on FY20.
- The Company’s income growth has accelerated in H2, with Q4 fee income up 14% on the prior quarter.
- PYR’s record gross merchandise Value (GMV) rose by 24% than FY20 to AU$85.0 million annualised GMV run-rate over AU$100 million, with a record quarterly GMV of AU$26.1 million achieved in Q4 (up 134% than FY20).
- PYR has also stated a total number of customers up by 58% to 53,489 as compared to 33,947 in FY20.
- Total merchant stores of PYR went up by 41% to 3,416 versus 2,415 in 2020.
- Payright’s gross receivables grew to AU$69.4 million, up by 47% than FY20’s AU$47.2 million.
- The Average Transaction Value of AU$3,558 has also reflected Payright’s position as a leader in higher-value transactions.
The PYR stock was spotted trading 8.334% lower at AU$0.385 per share at 11:50 AM AEST.
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27th Aug 11:43 AM AEST
Resolute Mining (ASX:RSG) revenue dips in FY21
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Gold miner and explorer Resolute Mining Limited (ASX:RSG) has released its half-year financial results for the year ended 30 June 2021 (H1-21).
RSG’s revenue for H1-21 was US$261.3 million from gold sales, around 14.4% lower than H1-20. RSG reported a net loss after tax of US$219.8 million, including non-cash adjustments of impairment expense of US$172.5 million relating to Syama mine. It is reflective of lower assumed gold prices, a 5-10% reduction compared to December 2020. There was also an increase in the risk-free rate applicable to the weighted average cost of capital (WACC) used in the impairment assessment.
At year-end, RSG had cash of US$52.8 million and bullion on hand worth US$36.1 million. RSG continued to invest in the business in H1 21 with capital cash expenses, largely for the Mako cutback and project capital at Syama.
RSG’s gold production and cost guidance for 2021 was recently updated on 29 July 2021.
RSG shares traded at AU$0.445 per share at 11:40 AM AEST.
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27th Aug 11:31 AM AEST
CIMIC’s (ASX:CIM) UGL secures NZ$600 million contract for Auckland passenger rail network
Capital goods giant CIMIC Group Limited’s (ASX:CIM) UGL has secured a contract for the operations of the Auckland passenger rail network in New Zealand. The contract will generate revenue to UGL of more than NZ$600 million over an initial term of eight years.
Key highlights:
- CIMIC’s UGL, and joint venture partner ComfortDelGro Transit, will assume responsibility for train operations.
- The responsibility will include the provision of drivers and other train staff, development of timetables, station operations and maintenance, security, customer-facing activities and revenue protection, and management of the Auckland Network Access Agreement and KiwiRail interface.
- In addition, rolling stock maintenance will be delivered by the joint venture from 2025.
CIM stock was trading at AU$20.820 per share at 11:20 AM AEST.
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27th Aug 11:16 AM AEST
Peter Warren Automotive (ASX:PWR) announces robust financial performance in FY21
Peter Warren Automotive Holdings Limited (ASX:PWR) has announced its financial result for the year ended 30 June 2021, which has delivered a robust performance across all financial metrics.
Key highlights of the result:
- PWR has generated revenue of AU$1,621 million, which exceeded the prospectus forecast by 6%.
- The Company has reported its PBT of AU$75.7 million, which has exceeded the prospectus forecast by 68% of AU$45 million.
- PWR’s revenue and margin performance has portrayed strong execution and operating leverage.
- The Company’s footprints have grown through four acquisitions and greenfield developments.
- Peter Warren Automotive has also secured a strong financial position and has closed cash of AU$43 million and no corporate debt.
The PWR stock was trading 5.014% lower at AU$3.410 per share at 11:15 AM AEST.
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27th Aug 11:08 AM AEST
Australian Prime Minister hints at an end to "Zero-COVID" approach
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After pursuing a zero-COVID strategy for around 18 months, Australian Prime Minister Scott Morrison has termed this approach "absurd". This came after Australia's largest city, Sydney, recorded the highest single-day spike in COVID cases, breaking the earlier record for the first time. Australia is witnessing an alarming spurt in the Coronavirus cases as the new delta variant has spread its tentacles across the country.
This is considered a major shift in the strategy as it appears that the Federal government has planned to drop most restrictions after its 80% of the adult population is vaccinated, which looks achievable by the end of this year. Though the Australian Prime Minister abstained from giving a strict timeline of when the new COVID strategy would see its implementation, he has hinted that the restrictions will be eased once the 70-80% vaccination target is achieved.
Meanwhile, on Thursday, New Zealand Prime Minister Jacinda Ardern defended her "COVID zero" strategy after a new delta was reported in Auckland last week. On Tuesday, New Zealand reported the highest surge in Covid 19 cases since April last year. Morrison's new approach to tackle Coronavirus is in stark contrast to the strategy adopted by his New Zealand counterpart.
As per the latest government data, 18,083,207 doses of the Covid 19 vaccine have been administered in the country. Furthermore, as of 26 August 2021, 55.2% of people over the age of 16 have had at least one dose, whereas 32.3% of people over 16 are fully vaccinated. As of 26 August 2021, the country had 46,840 cumulative cases.
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27th Aug 11:08 AM AEST
Dusk Group (ASX:DSK) registers a 54.4% growth in FY21 gross margins
Specialty retail company Dusk Group Limited (ASX:DSK) shared its unaudited results for FY21, ending 27 June 2021. Despite continued COVID-19 challenges and uncertainties, dusk has delivered record sales and earnings.
As compared to FY20, DSK saw a total sales growth of 47.4%. The total like-for-like sales were up 32.7%. DSK’s gross margin was up 54.4 per cent to AU$101.3 million. Pro forma earnings before interest and tax (EBIT) was up 224.7 per cent, and pro forma net profit after tax (NPAT) grew by 225.5 per cent to AU$26.8 million. DSK, as at the period end, had net cash worth AU$21.4 million. It also declared a final fully franked dividend of 10 cents per share.
As per the ASX release, a record 31% rise in signups for DSK rewards in FY21 are a clear signal of purchase intent into FY22 and beyond. Meanwhile, DSK is continuing its efforts for customers by developing and delivering differentiated DSK branded products.
DSK shares traded 5.793% down at AU$3.090 per share at 11:00 AM AEST.
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27th Aug 10:50 AM AEST
TasFoods (ASX:TFL) reports strong financials in first half of FY2021, share rise on the ASX
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The share price of Tasmania-focused premium foods business, TasFoods Limited (ASX:TFL) gained 4.545% per share and traded at AU$0.115 at 10:30 AM AEST on the ASX on Friday. The Company released its financial results for the half-year ended 30 June 2021 (H1 2021).
TFL has seen a sales revenue growth of 5% compared to H1-20. It managed to achieve revenue growth despite a pantry-stocking tailwind. The gross margins also improved and were at 27% compared to 23% in H1-20. As a result, TFL’s earnings before interest, taxes and amortization (EBITDA) improved by AU$1.019 million. It now has a strong cash position of AU$4.241 million and undrawn debt facilities of AU$1.468 million.
TFL’s trailing last 12 months’ financial results show a positive EBITDA of AU$0.37 million. It is reflective of the brand growth strategy adopted by TFL following the 2020 strategic review.
It has completed brand development work and go to market plans to launch its Isle and Sky organic range with an organic chicken product range in September 2021. It will make this range available in premium Coles stores in NSW and Victoria. It is now focusing on product development for the launch of Betta Milk lactose-free range and new ready-to-cook meals.
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27th Aug 10:46 AM AEST
ASX 200 opens mildly lower as Wall Street retreats from record highs
On Friday, the Australian benchmark index opened mildly lower, with Wall Street closing in red overnight over concerns of a potential shift in Fed’s policy. The ASX 200 was down 3.7 points to 7,487.5 during the opening trade. The domestic miners were holding the ground due to surging iron ore prices.
All three major US stock indices ended the session in red. The Dow Jones was down 0.54% to 35,213.11, while the S&P 500 lost 0.58% to 4,470.01. The NASDAQ Composite closed the session, 0.64% lower at 14,945.81.
The market breadth is reflecting investors’ mood of booking profits on the back of global ques. 7 out of the 11 sectors are trading lower with the IT sector leading the fall with a 0.32% downtick. Utilities were up 0.51%.
Paradigm Biopharmaceuticals Limited (ASX:PAR) has recorded a net loss of AU$34.3 million in FY21, despite nearly doubling its revenue to AU$8.9 million. Currently, the company is looking for FDA approval its Zilosul branded drug which aids in the treatment of osteoarthritis.
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27th Aug 10:45 AM AEST
Bega Cheese (ASX:BGA) records robust FY21 performance, credits a transformational acquisition
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Dairy giant Bega Cheese Limited (ASX:BGA) has shared its full year audited results for the financial year ended 30 June 2021. The Company completed a transformational acquisition in this period which in turn expanded its branded foods portfolio and increased the Company’s exposure.
As per the announcement, Bega Cheese generated normalised earnings before interest, depreciation and tax (EBITDA) of AU$141.7 million in FY2021, 38% higher than the prior year and sales revenue of AU$2.07 billion. The net debt remained at AU$324.9 million.
Trending ASX Stocks: Wesfarmers, Cleanspace, Lynas, Bega Cheese
The AU$528 million acquisition of Lion Dairy and Drinks, mostly funded by a AU$393 million net capital raise, saw Bega Cheese more than double in size. The revenue reached AU$3.0 billion and employee number touched more than 4,000. The expansion of its cold chain distribution network made it to be one of the largest in the country, and significantly increased its proportion of sales from branded products from 59% to in excess of 80%.
Bega Cheese also announced a final fully franked dividend of 5.0 cents per share for FY2021. This brings the total dividend for the year to 10.0 cps. The final dividend will be paid on 24 September 2021.
The stock BGA was spotted trading 3.085% higher at AU$5.680 per share at 10:30 AM AEST.
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27th Aug 10:14 AM AEST
Lynas (ASX:LYC) posts record profit, increased sales revenue and strong cost control
Lynas Rare Earths Limited (ASX:LYC) today released its Financial Report for the full year ending 30 June 2021.
The Company has registered a Net Profit of AU$157.1 million versus FY 2020’s AU$19.4 million.
Trending ASX Stocks: Wesfarmers, Cleanspace, Lynas, Bega Cheese
The Revenue stands at AU$489.0 million compared to AU$305.1 million in FY 2020. Record sales have been accomplished in the June quarter.
Other key financials:
- The Company posted EBIT of AU$169.5 million which was AU$6.2 million in FY 2020.
- EBITDA stood at AU$235.3 million against FY 2020’s AU$59.7 million.
- Company had closing cash and cash equivalents of AU$680.8 million versus FY 2020’s AU$101.7 million.
Meanwhile, the stock LYC traded last at AU$6.660 per share on the ASX.
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27th Aug 10:08 AM AEST
CleanSpace (ASX:CSX) revenue up 75% in FY21
CleanSpace Holdings Limited (ASX:CSX), manufacturer of respiratory equipment for healthcare and industrial employees, has shared its FY21 results on ASX.
In FY20, CSX saw a 75.8% growth in revenue, with a gross margin growth of 77%. Profits for the year grew 92.3%. It now has a strong cash position, links with new distribution partners and has expanded geographically. In addition, higher vaccination rates are enabling markets to re-open, which is shifting market dynamics favourably for CleanSpace.
CSX has seen a transformational year for its healthcare business. It has widened its customer base, with an addition of 850 hospitals clients. In addition, CSX has expanded sales capability and opened a manufacturing facility in Sydney with a capacity of over AU$100 million of revenue.
Trending ASX Stocks: Wesfarmers, Cleanspace, Lynas, Bega Cheese
Year to date FY22 monthly average sales are in line with management expectations and over 15 per cent of Q4 FY21 monthly average sales.
CSX shares last traded last at AU$1.375 per share on the ASX.
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27th Aug 10:05 AM AEST
Wesfarmers’ (ASX:WES) Net Profit surges 16.2%, Revenue up 10%
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Wesfarmers Limited (ASX:WES), on Friday, shared its financial highlights of the year ended 30 June. The Company has reported a statutory net profit after tax (NPAT) of AU$2,380 million for the time period. While NPAT from continuing operations, excluding significant items, increased 16.2% per cent to AU$2,421 million.
The Group shared it has recorded a solid operating cash flow result for the year. Operating cash flows of AU$3,383 million were 25.6% lower than the last year. There has been a robust growth in earnings triggered by a normalisation in working capital positions across the retail businesses. Also, the lower inventory and higher payables have balanced out at the end of the 2020 financial year as there was a good and upward demand of products.
Trending ASX Stocks: Wesfarmers, Cleanspace, Lynas, Bega Cheese
Wesfarmers also shared that it maintained flexibility in the balance sheet during the year to help ongoing investment across the Group along with addressing the current uncertainty. The Group recorded a net cash position of AU$109 million at the end of the year.
The release stated that in addition to the final ordinary dividend, the Board is recommending a return of capital of 200 cents per share, representing a AU$2,268 million distribution. The Company will be shelling out 178 cps as the full year ordinary dividend, fully franked.
Meanwhile, the stock WES traded last at AU$63.960 per share.
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27th Aug 09:26 AM AEST
ASX 200 to fall after Wall Street tumbles on taper concerns
The Australian shares are expected to fall on Friday after Wall Street tumbled overnight following Kabul attack and concerns of a potential shift in US Federal Reserve policy over its bond-buying program.The ASX 200 may start the day 8 points or 0.1% lower after closing 0.55% lower at 7,491.2 points in the previous session. However, domestic miners may gain on surging iron ore prices.
Meanwhile, a suicide bomb attack at crowded Kabul airport on Thursday killed scores of civilians and 12 US troops.
Wesfarmers is one of the major ASX-listed firms to announce its earnings on Friday.
On the other hand, US stocks fell after two hawkish Federal Reserve officials said the US Federal Reserve should begin closing its bond-buying program.
It comes just ahead of a speech by Fed Chair Jerome Powell on Friday at central bank’s annual Jackson Hole, Wyoming, policy symposium. The Dow Jones fell 0.55%, the S&P 500 dropped 0.6%, and the NASDAQ tumbled 0.65%.
Following comments by Fed officials on taper timeline, benchmark 10-year Treasury note yields hit their highest level since 12 August before retreating to 1.3491%.
On the other hand, the US dollar surged from one-week lows. The dollar index was up 0.259%.