A look at Popular Stocks: CBA, WOW, LYC, DHG, WPL, IAG, RIO

  • Jul 29, 2020 AEST
  • Team Kalkine
A look at Popular Stocks: CBA, WOW, LYC, DHG, WPL, IAG, RIO

Summary

  • Recently, CBA teamed up with Square Peg and Zetta Venture Partners to aid in bringing new solutions, utilising technologies like AI, and machine earning models to CBA’s 15 million retail and business clients.
  • Woolworths is intending to develop an automated regional distribution centre, as well as a semi-automated national distribution centre at Moorebank Logistics Park (Sydney). The planned sites would materially boost WOW’s capacity for growth, enhancing efficiency, etc.
  • In its lately released Q2 2020 report ended 30 June, Woodside Petroleum provided record production of 25.9 MMboe, rising by 7% from Q1 period, demonstrating high reliability across the portfolio.

In the past few months, the Australian equity market has faced the double whammy of bushfires and ongoing COVID-19 pandemic. Most of the businesses halted work in their respective factories, abiding by measures taken by the local governments to curb the spread of the pandemic.

However, the economy worldwide has now reopened, and commercial activities are back on track after governments started providing ease in the restrictions. In the following article, we will look at some of the popular ASX-listed stocks and their latest updates.

Commonwealth Bank of Australia

Commonwealth Bank of Australia (ASX:CBA) provides banking, financial and related services.

On 28 July, CBA notified the market on getting onboard 2 strategic partners with Square Peg and Zetta Venture Partners to aid in bringing new digital banking services, utilising technologies like AI, and machine earning models to CBA’s 15 million retail and business clients.

The new partnerships update was followed by another notification of X15 Ventures’ fourth newly launched venture, Backr. It is an application to support business owners unveil new digitally empowered firms to aid the economic recovery process.   

In May, the bank announced that it reached an agreement to sell a 55% stake in Colonial First State (CFS) to KKR, which is a global investment firm with US$207 billion of assets under management as of 31 March 2020. This transaction indicates a total valuation for CFS on a 100% basis of $3.3 billion, which will result in CBA receiving cash proceeds of around $1.7 billion from KKR.

During Q3 FY20 closed 31 March, the bank reported unaudited cash net profit from continuing operations amounting to $1.3 billion.

Do Read: Dividend Cut in Banking Industry.

On 29th July 2020, the stock of CBA was trading at $73.08 per share, with a rise of 1.205% (at AEST 2:10 PM). The stock of CBA has provided return of 5.29% and 23.20% within last one and three months, respectively.

Woolworths Group Limited

Woolworths Group Limited (ASX:WOW) is involved with food, general merchandise, and specialty retailing via chain store operations.

On 23 July, the Company announced that it was planning to develop an automated regional distribution centre and a semi-automated national distribution centre at Moorebank Logistics Park in Sydney. Construction for the same is likely to conclude by the end of CY23 with initial benefits anticipated to be fulfilled by FY25.

For FY20, Woolworths expects EBIT before significant items in the range of $3,200 - $3,250 million. WOW is anticipating investing $700 million- $780 million in technology along with fitout of the 2 distribution centres across the period of upcoming 4 years and has also inked an initial lease term of twenty years with Qube Holdings Limited (ASX:QUB).

On 29th July 2020, the stock of WOW was trading at $38.89 per share, with a rise of 0.258% (at AEST 2:14 PM). The stock of WOW has provided return of 6.65% and 5.41% within last one and three months, respectively.

Lynas Corporation Limited

Lynas Corporation Limited (ASX:LYC) is engaged in the integrated extraction and processing of Rare Earth minerals, mainly in Australia and Malaysia.

Recently, on 27 July, Lynas notified on entering a contract with the US Department of Defense for Phase I work on a U.S. based Heavy Rare Earth separation facility. The growth of a Heavy Rare Earths separation facility is a vital program for its 2025 growth plan.

During the quarter ended 30th June 2020, LYC reported invoiced sales revenue amounting to $38 million and sales receipts for the period stood at $42 million.

Do Read: A Look at the earnings update of two resources players.

Production work was closed for some time in Malaysia and in Mt Meld because of coronavirus MCO (movement control order) announced by the government of Malaysia. However, by early May Lynas Malaysia restarted the operational activities, and by mid-June Mt Weld recommenced the concentrate production.

In an answer to anticipated declines in demand, Lynas Malaysia started production at around 70% of Lynas NEXT rates and from June, production was operating at nearly 75% of Lynas NEXT rates.

On 29th July 2020, the stock of LYC was trading at $2.29 per share, with a fall of 3.376% (at AEST 2:16 PM). The stock of LYC has provided return of 28.11% and 50.96% within last one and three months, respectively.

Domain Holdings Australia Limited

Domain Holdings Australia Limited (ASX:DHG) is a real estate technology and services business, with primary focus on the Australian property market.

On 1 July, DHG announced about its plan to publish its 2020 full-year report to ASX by 20 August 2020.

On 5 May, Domain Holdings released Macquarie Australia Conference 2020 presentation wherein it highlighted the trading update pertaining to FY20 March quarter.

During the quarter ended March 2020, the digital revenue of the Company went up by 3% and total revenue rose by 1%. In the month of March 2020, DHG witnessed a recovery in new listings in key markets. Residential depth yield rose by 17% for the month due to positive effect of its new flexible pricing model, and boosted depth penetration in all states.

On 29th July 2020, the stock of DHG was trading at $3.3 per share, with a fall of 0.302% (at AEST 2:17 PM). The stock of DHG has provided return of 5.08% and 32.40% within last one and three months, respectively.

Woodside Petroleum Limited

Woodside Petroleum Limited (ASX:WPL) is into hydrocarbon exploration, evaluation, development, production, and marketing.

For Q2 FY20 closed 30 June, WPL reported record production of 25.9 MMboe with a rise of 7% from Q1 2020. Woodside managed to deliver increased sales volume of 27.1 MMboe, with a rise of 13% from Q1 2020. WPL continued to execute suitable responses to the collective effect of COVID-19, as well as lower commodity prices.

SOurce: Company's report

On 29th July 2020, the stock of WPL was trading at $20.25 per share, with a fall of 1.364% (at AEST 2:19 PM). The stock of WPL has provided return of -0.19% and 3.58% within last one and three months, respectively.

Insurance Australia Group Limited

Insurance Australia Group Limited (ASX:IAG) provides general insurance, including full range of personal and commercial insurance products.

For the year ended 30th June 2020, IAG reported gross written premium (GWP) growth of nearly 1%, in accordance with the ‘low single digit’ guidance of FY20. IAG reported an insurance margin of about 10%.

On 29th July 2020, the stock of IAG was trading at $4.995 per share, with a fall of 0.893% (at AEST 2:23 PM). The stock of IAG has provided return of -11.11% and -15.29% within last one and three months, respectively.

Rio Tinto Limited

Rio Tinto Limited (ASX:RIO) is involved with exploration, development, production and processing and marketing of minerals and metals.

On 28 July, RIO announced about the maiden Inferred Mineral Resource at the fully owned Winu copper-gold project and divulged on the detection of a new area of gold domineering mineralisation nearly 2 kilometres in the eastern direction of the Winu deposit in the Paterson Province of Western Australia.  

During Q2 FY20, RIO delivered a strong performance, mainly in iron ore and bauxite, reflecting the underlying resilience of its business, and ability to adapt in challenging situations. All assets of the Company kept on operating, though its main concern was to safeguard the health and safety of all its personnel and communities notwithstanding numerous coronavirus related difficulties.

On 29th July 2020, the stock of RIO was trading at $103.34 per share, with a fall of 0.74% (at AEST 2:20 PM). The stock of RIO has provided return of 7.03% and 21.40% within last one and three months, respectively.

 


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