At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. The benchmark index is currently up 0.7% to 6,679 points.
Here’s what has been happening on the market today:
Metcash jumps on half year results release.
The Metcash Limited (ASX: MTS) share price is jumping higher following the release of a strong half year result. For the six months ended 31 October, Metcash reported a 12.2% increase in group revenue to $7.1 billion and a 43% lift in underlying profit after tax to $129.6 million. Food sales were up 9.5%, Liquor sales rose 14.3%, and Hardware sales jumped 20.6%. Pleasingly, this positive momentum has carried over into the second half.
Iron ore producers storm higher.
Iron ore producers including BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are charging higher on Monday after the price of the steel making ingredient surged higher again. According to CommSec, on Friday the spot iron ore price jumped a further 5.4% to US$145.30 a tonne. News that Vale has downgraded its production guidance and robust demand have given prices a boost.
Xero shares given buy rating.
The Xero Limited (ASX: XRO) share price is charging higher today after analysts at Goldman Sachs slapped a buy rating and $157.00 price target on its shares. Goldman believes the cloud-based business and accounting software provider’s total addressable market will increase significantly in the future. Combined with attractive unit economics, the broker believes the long-term earnings opportunity for Xero is material.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Monday has been the Metcash share price with a 9.5% gain following its half year results release. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 3.5% decline. This appears to be down to profit taking after strong gains over the last couple of months.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- Why Fortescue, Metcash, Nuix, & Xero shares are storming higher
- Metcash (ASX:MTS) share price jumps 8% after strong first half growth
- Why ASX iron ore stocks are set to rally today
- Leading broker puts buy rating on Xero (ASX:XRO) share price
- 5 things to watch on the ASX 200 on Monday
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post ASX 200 up 0.7%: Metcash impresses, BHP & Fortescue storm higher, Xero given buy rating appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/2JZJXCQ
Leave a Reply