At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. The benchmark index is currently down 0.3% to 6,118.5 points.
Here’s what has been happening on the market today:
CBA delivers robust FY 2020 result.
The Commonwealth Bank of Australia (ASX: CBA) share price is flat at lunch following the release of a robust full year results for FY 2020. The banking giant reported operating income of $23,758 million, up 0.8% on the prior corresponding period. This reflects volume growth in home lending and deposits, which offset a 2 basis point decline in its net interest margin to 2.07%. CBA’s cash net profit after tax from continuing operations was down 11.3% to $7,296 million. This was driven largely by higher COVID-19 loan impairment expense. A 98 cents per share final dividend was declared.
SEEK outlook disappoints.
The SEEK Limited (ASX: SEK) share price has tumbled lower today after the release of its full year results. In FY 2020, the job listings giant’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 9% to $414.9 million. This was driven by a 17% decline in AP&A EBITDA to $295 million, which offset a 20% increase in SEEK Investments EBITDA to $151.7 million. While this decline was expected, SEEK’s outlook appears to have underwhelmed. Due to the negative impact of the pandemic, SEEK has suggested that its EBITDA could drop 20.5% in FY 2021.
Gold miners sink lower.
Australia’s leading gold miners are sinking into the red on Wednesday after the gold price crashed almost 6% lower overnight. The likes of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are all under significant pressure. This appears to have been driven by improving economic data and a potential Russian coronavirus vaccine. The S&P/ASX All Ordinaries Gold index is down 5.5% at the time of writing.
Best and worst ASX 200 shares.
The best performer on the ASX 200 at lunch is the Unibail-Rodamco-Westfield (ASX: URW) share price with a 5% gain. Bargain hunters may be buying the shopping centre operator’s shares after a heavy decline in 2020. The worst performer is the SEEK share price with a 10% decline. This follows the release of its aforementioned full year results.
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More reading
- ASX investors have been buying these international shares
- As CBA slashes its dividend, the brutal reality is bank shares have been dogs for 5 years, with more pain ahead
- Why Mesoblast, Northern Star, SEEK, & WiseTech Global shares are sinking lower
- Coronavirus: SkyCity share price falls as NZ restrictions tighten
- SEEK share price on watch after COVID-19 profit hit
Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK Limited. 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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