On August 10, 2020, S&P/NZX50 ended the session in green as there was an increase of 0.32% to 11,683 while S&P/NZX20 encountered a rise of 0.25% to 7,801. On the same day, S&P/NZX10 witnessed an increase of 0.31% to 12,356.
S&P/NZX All Materials ended in green as there was an increase of 3.13% while S&P/NZX All Financials fell by 0.51%.
On August 10, 2020, the stock price of Just Life Group Limited (NZX: JLG) witnessed a rise of 14.94% to NZ$0.500 per share. Also, the share price of NZME Limited (NZX: NZM) increased by 8% to NZ$0.270 per share.
The following image provides an overview as to how the share price of NZM has trended in the span of past one year:
Stock Performance (Source: NZX)
STU Provided FY 2020 Trading Update
Steel & Tube Holdings Limited (NZX: STU) came forward and provided trading update as well as forecast for the company’s FY 2020 results which would be announced on August 28, 2020. The company stated that its FY 2020 normalised EBIT is anticipated to be around breakeven subject to completion of the audit work. On pre-NZ IFRS 16 basis, its FY 2020 normalised EBIT is anticipated to be a loss of ~$5 Mn- $7 Mn.
There are expectations that the company would report robust operating cash flows of around $26 Mn (pre-NZIFRS 16) due to continued working capital discipline, with inventory significantly reduced to ~$101 Mn at June 30, 2020. Its balance sheet is robust, and STU anticipates to report net cash of ~$7 Mn at June 30, 2020.
On August 10, 2020, the stock price of STU ended in green as there was a rise of 3.57% to NZ$0.580 per share.
A Recent Update on CEN
Contact Energy (NZX: CEN) came forward and made an announcement that it would be taking full ownership of Simply Energy. As per the release, transaction is anticipated to be completed on August 31, 2020. In the month of June 2019, CEN made an acquisition of 49.9% shareholding in Simply Energy and purchase price amounted to $10.7 Mn. The transaction had an option for CEN to buy remaining shares in Simply Energy.
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