The S&P/ASX 200 Index (INDEXASX: XJO) finished the week up by 1.6% despite exhibiting some early wobbles. The week saw continued heavy trading of real estate companies, a steadying of the oil price, the government announcement of a $1.5 billion infrastructure package, and the largest retail turnover rise in 38 years. Although most ASX shares saw gains, as always, some also lost ground for the week.

Buy now, pay later

Buy now, pay later shares continued their inexorable rise last week. The Afterpay Ltd (ASX: APT) share price rose by 12.86%, while Sezzle Inc (ASX: SZL) surged a massive 30.13%. However Zip Co Ltd (ASX: Z1P) saw its share price fall by 2.22% in the wake of likely profit taking. 

Another fintech company to see a double digit rise last week was Pushpay Holdings Ltd (ASX: PPH) with a 12.13% increase on the back of updated earnings.

Discretionary retail

Better than expected retail sales figures, along with a strong progress report from Wesfarmers Ltd (ASX:WES), placed some fire under the retail discretionary sector. The ABS Retail Trade Survey found that retail turnover rose 16.3% in May. As mentioned, this was the largest seasonally adjusted rise in 38 years. 

AP Eagers Ltd (ASX: APE) saw its share price jump 12.48% and Domino’s Pizza Enterprises Ltd. (ASX: DMP) also rose by 10.78%. In addition, Breville Group Ltd (ASX: BRG) saw a 13.67% rise in its share price. Lastly, small cap women’s clothing retailer City Chic Collective Ltd (ASX: CCX) saw a very impressive increase of 19.77% on its share price for the week. 

Event-based ASX share price jumps

Three ASX small-cap shares stood out during the week with large-scale price rises due to specific events.

The Cardinal Resources Ltd (ASX: CDV) share price rose by 36.4% across the week on news that the company had recommended its shareholders accept a $300 million takeover deal.

The Healius Ltd (ASX: HLS) share price also jumped by 11.4% following news of a $500 million sale of its medical centres.  

Tiny engineering firm Decmil Group Limited (ASX: DCG) impressed the market by raising $52.4 million via a release of new shares due to start trading on 24 June. This capital raising is almost equal to the company’s entire current market capitalisation. Decmil saw its share price surge by 23.63% following news of the entitlement offer.

Market laggards

The real estate sector has been the highest traded sector over the past three weeks. Investors appear to be split over just how significant the impact of COVID-19 will be on the retail shopping A-REITs. While many A-REITs finished last week marginally higher, two with the largest exposure to retail saw falls. 

The Vicinity Centres (ASX: VCX) share price fell by 3.8% as did the Scentre Group (ASX: SCG) with a decline of 4.33% for the week. 

Other significant ASX share price falls were seen by airline and travel companies. Sydney Airport Holdings Pty Ltd (ASX: SYD) fell by 6.06%. Moreover, small cap Alliance Aviation Services Ltd (ASX: AQZ) saw its share price dive by a worrying 7.81%. This included a 2.64% tumble on Friday following the company’s announcement of a $30 million share purchase program, which was on top of its recent $90 million dollar capital raising. 

More reading

• Why Kogan, Sezzle, & Splitit shares just hit record highs
• ASX 200 Weekly Wrap: ASX back in the green
• Are these small cap ASX tech shares the next Afterpay or Appen?
• Top brokers name 3 ASX 200 shares to buy next week
• Where I would invest $50,000 into ASX shares immediately

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited, Scentre Group, and Sezzle Inc. 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.

The post ASX share price winners and losers of last week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YTmzuU

The Metcash Limited (ASX: MTS) share price could be on the move today after the release of its full year results this morning.

How did Metcash perform in FY 2020?

For the 12 months ended 30 April 2020, Metcash delivered a 2.9% increase in revenue to $13 billion and a 2% lift in revenue including charge through sales to $14.9 billion.

This was driven by a 3.5% increase in Food sales to $8.8 billion and a 0.3% lift in Liquor sales to $3.68 billion, but partially offset by a 1.3% decline in Hardware sales to $2.08 billion.

Due largely to weaker earnings in its Food segment, group underlying earnings before interest and tax (EBIT) fell 1.8% to $324.2 million. The Food segment was impacted by onerous lease obligations and the ceasing of supply to Drakes Supermarkets in South Australia.

After adjusting for these items, group underlying EBIT increased by ~$12 million.

On the bottom line, Metcash posted a reported loss after tax of $45.9 million. This compares to a profit after tax of $192.8 million in FY 2019 and was the result of material impairments to goodwill and other assets.

A total post tax impairment of $237.4 million was made in the first half following advice from 7-Eleven that it will not be renewing its current supply agreement with Metcash.

On an underlying basis, profit after tax was roughly flat at $209.7 million or 23 cents per share.

The Metcash board has determined to pay a fully franked final dividend of 6.5 cents per share. This brings its total dividends for FY 2020 to 12.5 cents per share.

A year of unprecedented challenges.

The company’s CEO, Jeff Adams, was pleased with Metcash’s performance over a very eventful and difficult 12 months.

He said: “I am pleased to report very admirable results in a year of unprecedented challenges that included the impact of devasting bushfires and the COVID-19 pandemic.”

“Our businesses went to extraordinary lengths to support our employees, our retailer network and local communities in their time of need. This included investing in their safety and wellbeing, in operations to ensure the continuity of supply of essential products, as well as in supporting retailers impacted by COVID-19 restrictions,” he added.

Trading update.

Metcash has started FY 2021 in a very positive fashion. For the first seven weeks of the new financial year, Food sales are up 9.3%, Liquor sales are up 5.5%, and Hardware sales are up 9.4%.

However, management warned: “There is uncertainty over the timing of further lifting of COVID-19 restrictions in Australia and the extent that our businesses will continue to benefit from the favourable change in consumer behaviour.”

Total Tools acquisition.

Metcash also revealed that its proposed acquisition of 70% of Total Tools Holdings for ~$57 million is in the final stages of negotiations.

Total Tools is the franchisor to the largest tool retail network in Australia, with its 81 stores nationwide generating sales of ~$555 million.

Management notes that this aligns with its strategy of being the leading supplier to independents in each of its three segments. It also expects it to enhance its position in the Australian hardware market and increase its exposure to trade customers.

More reading

• 5 things to watch on the ASX 200 on Monday
• Australian retail sales up 16.3% in May
• 3 defensive ASX shares to buy if the sell-off continues
• Woolworths facing fresh threat from Amazon.com
• Meet the ASX stocks to benefit from the new $688m home stimulus

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Metcash share price on watch after recording $45.9 million FY 2020 loss appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Z05Oho