The S&P/ASX 200 Index (ASX: XJO) has continued to recover strongly.
Over the weekend New Zealand officially declared itself COVID-19 free. Most Australian states reported no new cases. International share markets performed well on Monday, so it was not surprising to see the ASX do well too.
Unloved shares keep bouncing
Some of the ASX 200 shares to have seen the biggest selloff during the coronavirus crash are among the ones bouncing back the hardest today.
The Credit Corp Group Limited (ASX: CCP) share price jumped 15.7% today.
The Worley Ltd (ASX: WOR) share price increased by 14.6%.
Virgin Money UK Plc (ASX: VUK) saw its share price rise by 14.3%.
The Flight Centre Travel Group Ltd (ASX: FLT) share price soared 13.8% higher.
The Scentre Group (ASX: SCG) share price went up almost 10%.
Wesfarmers Ltd (ASX: WES) retail trading update
The (mostly) retail ASX 200 conglomerate released an impressive trading update today.
In the second half of FY20 to 31 May 2020, Wesfarmers has seen strong growth. Bunnings sales were up 19.2% compared to the prior corresponding period. Officeworks sales were up 27.8%. Catch’s gross transaction value was up 68.7%. Kmart sales were up 4.1%. Only Target has seen a revenue decline in the second half, with sales retreating 1.8%.
Excluding Catch, Wesfarmers’ online sales are up 60% in the financial year to date.
However, whilst sales are up strongly, costs have risen too for the ASX 200 company because of coronavirus restrictions and expenses to ensure safe stores.
CSL Limited (ASX: CSL) share price drops on acquisition
The ASX 200 biotech giant’s share price fell over 2% today after announcing an acquisition. The falling US dollar isn’t helping either.
CSL is exercising its option to acquire biotech company Vitaeris. This company is a clinical-stage biotechnology company focused on the phase III development of a treatment for rejection in solid organ kidney transplant patients.
CSL said the cost of the acquisition is modest and does not materially change the company’s profit expectation for 2020. However, there will be extra R&D expenses in FY21 estimated to be between $30 million to $50 million.
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More reading
- Why the CSL share price continues to trail the ASX 200
- The ASX bank dividend recovery may be better than what the market thinks
- Why Credit Corp and Zip Co shares jumped over 15% higher today
- Top brokers just upgraded these 3 ASX stocks to “buy”
- Not keen on Westpac? Then buy these top ASX dividend shares instead
Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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