ASX 200 up 0.2%: Westpac cancels dividend, Treasury Wine hammered, Coles impresses

At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) has overcome weakness in the banking sector and is pushing higher. The benchmark index is currently up 0.2% to 6,088.3 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

Westpac cancels interim dividend.

The Westpac Banking Corp (ASX: WBC) share price is sinking lower and acting as a major drag on the ASX 200 on Tuesday. This morning the bank released its third quarter update which revealed unaudited quarterly cash earnings of $1.32 billion. While this was higher than its quarterly average during the first half, it fell short of expectations. In addition to this, news that there would be no interim dividend in FY 2020 is weighing on its shares. As is a lift in its provisions relating to the pandemic.

Coles delivers strong FY 2020 result.

The Coles Group Ltd (ASX: COL) share price is pushing higher today after the release of a strong full year result. Coles reported sales revenue growth of 6.9% to $37.4 billion. This was driven by growth across all segments and particularly strong comparable store sales growth across the Supermarkets business. In respect to earnings, Coles posted earnings before interest and tax (EBIT) of $1,387 million and a net profit after tax of $951 million. This represents a 4.7% and 7.1% increase, respectively, over the prior corresponding period.

Cochlear shares jump.

The Cochlear Limited (ASX: COH) share price is surging higher today after the release of its full year results this morning. The hearing solutions company reported a 6% decline in sales revenue to $1,352.3 million in FY 2020. This was driven by a 7% decline in Cochlear implant unit sales following COVID‐19‐related surgery deferrals. Judging by the share price reaction, investors may have been expecting a much worse sales result.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Tuesday has been the Monadelphous Group Limited (ASX: MND) share price with a 15% gain. This follows the release of the engineering company’s full year results. The worst performer has been the Treasury Wine Estates Ltd (ASX: TWE) share price with a 14% decline. This follows news that the Chinese Ministry of Commerce has initiated an anti-dumping investigation into Australian wine exports into China.

More reading

• Why Cochlear, Kogan, Megaport, & Northern Star shares are charging higher
• Westpac share price slides 4% after third quarter result
• The Monadelphous share price rockets 16% on FY20 results
• Why Tyro, Virtus Health, Webjet, & Westpac shares are dropping lower
• New investors should do this before investing in ASX shares

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Cochlear Ltd. 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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