How are these ASX50 stocks performing on ASX?

Highlights:

• Benchmark S&P/ASX 200 closed in red at 6,729.30 points on 7 September 2022.
• Nine out of eleven major sectors ended lower, in line with the broader market.
• Information Technology was the best performing sector, as it closed 0.33% higher than the previous close.

Australian stock market benchmark index, S&P/ASX 200 set a new 20-day low today as it dropped 97.20 points to close at 6,729.30. All Ordinaries index was 1.37% lower, and A-VIX was 8.85% higher.

On Wednesday, the sectors ended mixed as nine out of eleven significant sectors ended lower. The energy sector was the worst performing sector which ended 3.10% down, followed by the utilities sector, which closed 2.23% lower. Information technology evolved as the best performing sector as it closed 0.34% up, rebounding from its recent fall. 

Meanwhile, ASX 50 closed 1.51% down at 6,512.00 points. In one month, the index has dropped 4.31%, and the year-to-date fall is 9.78%.

In this article, we are going to discuss the stock performance of a few ASX50 stocks. The stocks discussed here are Fortescue Metals Group Ltd, Endeavour Group Limited, Telstra Corporation Limited, Wesfarmers Limited and Woolworths Group Limited.

Fortescue Metals Group Ltd (ASX:FMG)

2022 has been a rather tough year for Fortescue till now. On a year-to-date basis, Fortescue’s share price has dropped by nearly 20%. In last six months, shares recorded a fall of 14.15%. In last one month, the share price has recorded a dip of 15.51% (as of 3:59 PM AEST).

Talking about the performance in the past five days, the share price has fallen by 12% despite any update or news shared by the group. 

Fortescue shares had gone ex-dividend on 5 September 2022, and this could justify the fall in the share prices that day. While sharing the full-year results, the company had declared a final dividend of AU$1.21 per share. It was a fully franked dividend.

The expected payment date is 29 September 2022.

Endeavour Group Limited (ASX:EDV)

Shares of Endeavour were performing quite well in the 2022 calendar year, as on a year-to-date basis, the share price surged by over 8%. In last 6 months, it has increased by more than 7%. However, in past one month, it has dropped by 6.35%.

Last month’s performance can be linked with the financial results released by the group on ASX. 

FY22 was marked as a ‘significant one’ by Steve Donohue, managing director and CEO, Endeavour Group. Still, on the date of full-year results, Endeavour Group’s share price nosedived from AU$8.27 per share on 22 August 2022 to AU$7.25 per share on 23 August 2022. 

In last 12 months, the company posted flat year-on-year group sales. Group EBIT grew 2.8% to AU$924 million, and group NPAT increased 11.2% to AU$495 million. Earnings per share grew 11.3% to 27.6 cents. 

For the six months, the company announced a dividend of 7.7 cents per share, up by 10% on the prior period.

Telstra Corporation Limited (ASX:TLS)

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Telstra shares have garnered immense limelight in the past few weeks as it increased its dividend in seven years on account of the successful execution of Telstra2022 (T22). Noteworthy here is that, in the financial year 2022, the company recorded a 4.7% fall in its total income and a 4.6% fall in NPAT. Despite this, the company had increased its distribution.

Telstra’s CEO, Andy Penn, said that the increase in the distribution indicates the board’s confidence following the completion of T22 strategy.

Penn said that the T22 strategy has created a foundation for the company’s growth and had set it to manage the uncertain economic climate. He added that T22 had prepared the organisation to manage uncertainties as it has become a digitally enabled, customer-focused, learner, more efficient, more agile and simpler business. 

Wesfarmers Limited (ASX:WES)

Wesfarmers is engaged in diverse business operations, ranging from industrial and safety products to home improvement products. 

When talking about Wesfarmers, generally, an investor would think about retailing business. But there are non-retail business segments that made a significant contribution to the yearly revenue of the group.

According to ASX announcement, revenue from Bunnings grew by 5.2%, WesCEF’s (chemicals, energy and fertiliser) revenue grew by 41.7%, industrial and safety revenue increased by 3.8%, and Kmart revenue dropped by 3.5%.

Today, Wesfarmers’ shares headed south. The company shared through ASX-announcement that Simon Willian English, director of the company, has acquired 1,130 shares for the consideration of AU$47.05 per share. Generally, when a director of a company acquires shares, then the share prices surge as it shows management’s confidence.  

But today, Wesfarmers shares have defied the same and have taken a downward trend.

Woolworths Group Limited (ASX:WOW)

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Shares of Australian retailing giant Woolworths have been volatile in the past. In one year, the share price has dropped by 8.98%, and in the last six months, it has registered a gain of 1.87%. In one month, the shares have fallen by 4.76%, and recorded a surge of 1.14% in the past five trading sessions. 

Yesterday, Woolworths’ shares performed quite well, as the company shared that MyDeal.com.au’s shareholders have voted in favour of a scheme of arrangement under which Woolworths would acquire 80.2% holdings in the company.  

As per the announcement, ACCC (Australian Competition and Consumer Commission) has also not opposed the deal. Approvals from Scheme Resolution and the EGM Resolutions are received. Now the scheme is subject to court’s approval, which is expected on 13 September 2022, the second court’s hearing date.