Market Update: S&P/NZX50 Falls 0.52% on August 3, 2020; SCL Tumbled By 6.10%

  • Aug 03, 2020 NZST
  • Team Kalkine
Market Update: S&P/NZX50 Falls 0.52% on August 3, 2020; SCL Tumbled By 6.10%

On August 3, 2020, S&P/NZX50 ended the session in red as the index witnessed a fall of 0.52% to 11,666 and S&P/NZX20 declined by 0.38% to 7,810. On the same day, S&P/NZX10 encountered a decline of 0.22% to 12,423.

S&P/NZX All Information Technology ended the session in red as there was a fall of 2.90% while S&P/NZX All Materials rose by 0.06%. We would now have a quick look at the performance of some individual stocks.

The stock price of New Talisman Gold Mines Limited (NZX: NTL) rose by 14.29% on an intraday basis to NZ$0.008 per share. Also, the share price of Allied Farmers Limited (NZX: ALF) increased by 6.67% to NZ$0.640 per share.

The following image gives a broad overview as to how the share price of ALF has trended in the span of past one year:

Stock Performance (Source: NZX)

SCL Provided Earnings Update

Scales Corporation (NZX: SCL) came forward and provided business as well as earnings guidance update. Notably, for the first six months of the year, all of the company’s business units have operated successfully, within the protocols established. The operations within NZ operated effectively, however, sales rates as well as pricing in international markets have been more variable. Resultantly, the earnings for full 2020 year might be impacted.

At the Group level, the company’s Directors have advised that underlying net profit for 12 months to December 31, 2020 is anticipated to be at the bottom end of guidance range, of between $30 Mn- $36 Mn.

The stock price of SCL ended the session in red as there was a fall of 6.10% to NZ$4.930 per share.

RAK Ended the Session in Green

Recently, Rakon Limited (NZX: RAK) has released its annual report for FY 2020, wherein, the company stated that coronavirus has had a negative short-term impact with NZ as well as Indian operations severely restricted for periods of time. However, in the medium to longer term, the pandemic is not expected to have a significant adverse effect on RAK. It was mentioned that telecommunications segment forms major part of the company’s operations and coronavirus has increased dependency on remote communications, reliable telecommunications infrastructure as well as higher network capacities.

 


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