Why these five ASX stocks are trending today

Highlights

  • Seven West Media’s EBITDA more than doubled to AU$253.9 million during FY21.
  • JBH Hi-Fi’s sales were up 12.6% to AU$8.9 billion in FY21 as heightened customer demand for consumer electronics continued.
  • Sydney Airport has rejected a revised bid of AU$22.8 billion for its 100% acquisition, considering it to be an undervalued offer.

On Monday, the broader market is witnessing a correction, having closed at a record high on Friday. As of 11:16 AM AEST, the ASX 200 has fallen below the 7600 mark and is trading 0.41% lower at the day’s low of 7597.6.

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The market breadth is also deteriorating, with eight out of the 11 sectors falling today. The energy sector is leading the losses with a 1.26% fall as crude oil dipped on Friday. The financial space is the second biggest losing sector followed by Consumer Discretionary, both falling 1.16% and 0.87%, respectively. The Metals and Mining sector is trying to hold its ground, with a 0.7% gain.  

Let’s have a look at five ASX stocks that remained in the limelight during the opening session.

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  1. Seven West Media Limited (ASX:SWM)

Seven West Media has announced its financial results for FY21 ended 26 June 2021. The company’s significant progress in its transformation strategy reflects in its numbers as the underlying net profit shot up by a whopping 240% to AU$125.5 million, over the last year. The firm’s EBITDA also more than doubled to AU$253.9 million during the reported period.

The Olympic Games, Tokyo 2020, also contributed to the company’s reach and scale of business. During the 17 days of the Olympics, Seven West Media’s television coverage reached a record breaking 4.74 billion minutes of streaming on 7plus. The SWM share price is trading 5.44% down, at AU$0.485, clocking a volume of over 13 million shares, the highest for the moth so far.

  1. JBH Hi-Fi Limited (ASX:JBH)

JBH Hi-Fi has also announced its FY21 results today. The sales were up 12.6% to AU$8.9 billion as heightened customer demand for consumer electronics continued. There was an impressive increase of 67.4% in the net profit after tax (NPAT) to AU$506.1 million, contributed by an uptick of 27 basis points in the gross margin.

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During the period, the company continued making investments in its online and supply chain operations including an expansion to its delivery and warehouse options. For FY22, the group is looking to focus on building partnerships with major suppliers to extend its capabilities. The JBH share price is trading 0.48% down, at AU$48.09.

  1. Sydney Airport Pty Holdings Limited (ASX:SYD)

The management of Sydney Airport has rejected a revised bid of AU$22.8 billion for its 100% acquisition, translating to AU$8.45 cash per stapled security, up from AU$8.25 cash per stapled security.  The management is still not satisfied with the valuation at which the offer has been revised.

The airport remains strongly positioned and has tightly managed its cost and is open to higher bids. The management is confident of a bright and opportunistic future in light of economic recovery form the COVID-19 pandemic. The SYD share price is trading almost flat at AU$7.75.

  1. Commonwealth Bank of Australia (ASX:CBA)

CBA has been in the limelight since last week, when the bank announced its massive buyback program of AU$6 billion worth of ordinary shares. It will be an off-market transaction which has opened today and will closed on Friday, 1 October 2021.

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Investors have also been cheered by a full year dividend hike of 17% in FY21 over the last year. Last week’s announcement of FY21 results also highlighted full year dividend distribution of AU$3.5 per share as net profit soared to AU$8.84 billion. The CBA share price has fallen 1.41% to AU$102.56 today and is down 5.93% from its 52-week high of AU$109.03 made last week.

  1. Dimerix Limited (ASX:DXB)

A AU$48 million biopharmaceutical company, Dimerix has released an investor presentation today. The company’s DMX-200 candidate, targeting COVID-19 pneumonia patients in ICU has progressed to Pivotal/Phase 3 study.  A 16-week treatment on patients has yielded reduced inflammatory biomarker by 39%, compared to placebo.

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Recently, the company also charted out a capital raising plan to raise approximately AU$22 million via a placement to institutional investors and a share purchase plan. Around 80% of the net proceeds would be used towers clinical studies. The DXB share price has shot up by a massive 46.81% to AU$0.345, retracing from the day’s high of AU$0.48.              

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