- Woolworths announced the demerger of Endeavour Group Limited, with Endeavour Group debuting on the ASX on 24 June.
- Fletcher Building started the market buyback program for the next 12 months.
- Auckland International Airport is planning for international passenger recovery following New Zealand’s vaccination programme is rolled out across the remaining 2021.
- Westpac Banking Corporation signed deals to sell Westpac Life-NZ- Limited, Westpac General Insurance Limited and Westpac General Insurance Services.
The benchmark index, S&P/ASX 200, has witnessed an improvement since the beginning of last month, aided by the developments of a few big ASX-listed players. Endeavour Group was in the spotlight after Woolworths decided to split Endeavour Group via a demerger. Fletcher Building shares were also trending following the announcement of on-market share buyback.
Auckland International Airport and Westpac Banking Corporation were other major players in the limelight driven by key announcements.
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Let us walk through these four trending stocks on the ASX:
Endeavour Group Limited (ASX:EDV)
Endeavour Group is the largest retail drinks and hospitality business in Australia. Endeavour Group started trading on the ASX on 24 June. The listing Endeavour Group shares come out of Woolworths Group shareholders tremendously voting to favour demerging the Endeavour Group on 18 June 2021.
Endeavour Group’s chairman, Peter Hearl, stated:
The Company has been in the news after Woolworths (ASX:WOW) announced its intention to split Endeavour Group via demerger. On 01 July 2021, WOW announced the demerger of Endeavour Group Limited and the transfer of Endeavour shares to Qualified Shareholders and the Sale Agent got completed. Following this update, the shares of Endeavour Group started trading on a regular settlement basis.
On 24 June 2021, EDV shares started trading at AU$6.02 and settled at AU$6.180 on 07 July 2021, representing a growth of ~2.66%.
Fletcher Building Limited (ASX:FBU)
Fletcher Building is a dual-listed Company operating across six divisions - Building Products, Residential and Development, Distribution, Construction, Concrete, and Australia.
The Company gained massive attention following its media release related to on-market share buyback on 26 May 2021. FBU had announced that it would undertake a capital return to shareholders of up to NZ$300 million.
From 10 June 2021, the buyback program started for the next 12 months at the prevailing market price from time to time in that period.
In the past three months, FBU shares have delivered a growth of just 2.72%. On 07 July 2021, the shares settled at AU$6.79.
Auckland International Airport Limited (ASX:AIA)
Auckland International Airport Limited is into airport operations. AIA stock garnered considerable attention after the release of its market update.
On 01 July 2021, AIA highlighted that it is maintaining its wise methodology to financial management while it plans for international passenger recovery following New Zealand’s vaccination programme is rolled out across the remaining 2021.
Operating expenses are increasing to support the global recovery. Other than this, AIA highlighted that the pre-payment of USPP debt brings a decline in projected interest expense.
AIA projects that the previous guidance would remain unchanged with a loss after tax in between AU$35 million and AU$55 million.
In this entire process, the timely rollout of the vaccine programme would play a vital role in connecting NZ to the rest of the world.
In the past three months, AIA shares have improved marginally. On 07 July 2021, the shares settled at AU$7.030, up 1.589% from their previous close.
Westpac Banking Corporation (ASX:WBC)
Westpac Banking Corporation provides banking, financial and related services. In July 2021, the Company was in the spotlight for below reasons:
- On 06 July 2021, Westpac Banking Corporation signed an agreement with Fidelity Life Assurance Company Limited to sell Westpac Life-NZ- Limited. It also signed an exclusive 15-year deal to distribute life insurance products to WBC’s NZ clients.
- On 01 July 2021, Westpac confirmed the completion of the sale of its Westpac General Insurance Limited and Westpac General Insurance Services Limited to Allianz for AU$725 million. WBC also entered into an exclusive 20-year deal for the distribution of general insurance products to Westpac’s clients. Also, in CY2021, WBC would receive another AU$25 million, depending on the integration milestone, with contingent payments over the subsequent five years coupled with continuing payments under the distribution deal.
In the past three months, WOW shares have improved marginally. On 07 July 2021, the shares settled at AU$25.60, up ~0.59% from their previous close.