E-commerce book retailer Booktopia Group (ASX: BKG) has made its debut on the ASX today, after raising $43.1 million through an initial public offering (IPO) at a price of $2.30.

The Booktopia share price jumped to as high as $2.86 just minutes after listing, but has since retreated to $2.69 at the time of writing.

Booktopia provides market update

Booktopia issued a trading update after the shares listed, saying that its November figures were closely tracking forecasts made on its IPO prospectus. 

The company also advised that the first stage of its $20 million Sydney distribution centre is complete, and will be fully operational in time for Christmas trading.

This stage one completion has increased its potential capacity from 30,000 units to 60,000 units per day of outbound handling. Stage two meanwhile, will trial autonomous robots and reach shelves of up to 5m high – allowing more high-density shelving.

Commenting after the IPO, Booktopia chief executive Tony Nash said:

We are expecting our biggest Christmas ever, and with the ability to process up to 60,000 book sales a day, we will be able to satisfy more customers.

More about the Booktopia IPO

The decision to float Booktopia, which also owns the Angus & Robertson brand, was made after the company experienced a sales boom during the lockdown restrictions caused by COVID-19. 

The company had delivered a full-year FY20 sales of $165 million, a 28% increase over FY19. Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose strongly by 67% to $6 million.

In its prospectus, Booktopia says that its forecast total sales for the year ending 30 June 2021 will be $204.5 million, with an EBITDA of $9.4 million.

The Booktopia IPO raised $43.1 million, with the company offering 10.9 million new shares and 7.9 million existing shares at $2.30 per share – giving it a market value of $315.8 million.

Of the $43.1 million raised, Booktopia says it will use $25.1 million to boost resources at the company’s 14,000sq m warehouse, as well as pay down debt.

During the IPO book buildup, chief executive Nash said that online consumer book sales made up 15% of overall book sales in Australia.

More reading

• Amazon grew even more dominant in 2020
• Can OPEC deliver more share price gains for Santos (ASX:STO) and Woodside (ASX:WPL)?
• Why ASX iron ore stocks like the Fortescue (ASX:FMG) share price are surging today
• AppsVillage (ASX:APV) share price rockets 134% higher on TikTok agreement
• 3 reasons why Brickworks (ASX:BKW) shares are a buy for dividends

Motley Fool contributor Eddy Sunarto 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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More people are doing more online shopping than they’ve ever done before in 2020. As shoppers flock to online outlets, Amazon.com Inc (NASDAQ: AMZN) has stood out from the crowd in 2020. Despite already dominating online sales, the company has seemingly increased its standing at the top of e-commerce despite strong performances from competitors such as Walmart Inc (NYSE: WMT), Target Corporation (NYSE: TGT), and eBay Inc (NASDAQ: EBAY).

Where most people begin their product search

Fifty-three percent of online shoppers begin their product search on Amazon.com, according to a recent survey from ChannelAdvisor. About six months ago, a survey from CivicScience found just 47% of of internet users started their product search on Amazon.com.

While the surveys aren’t perfectly comparable, the recent results show a positive trend for Amazon. That trend also shows up when asking people where they go to research potential purchases. Sixty-five percent of respondents said Amazon, 45% said Alphabet Inc‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, and 25% said another online marketplace such as Walmart, Target, or eBay. A similar question in a January 2018 survey saw more people select search engines (69%) versus Amazon (61%).

The increased interest in searching on Amazon bodes well not just for Amazon’s retail and marketplace sales, but for its advertising business as well. The vast majority of Amazon’s ad revenue comes from sponsored listings in its search results. As Amazon’s search traffic grows faster than the rest of the industry, it stands to take an increased share of marketing spend in e-commerce channels.

Shoppers are finding more reasons to use Amazon

Not only are people starting their product searches on Amazon.com, but they’re also spending more. Forty-five percent of respondents to the ChannelAdvisor survey said they’re spending more time on Amazon than they did before March. That compares with just 35% for other marketplaces.

While Amazon’s sales growth hasn’t kept up with the online sales booms at Walmart and Target, it’s still outpacing the broader e-commerce market. Its online store revenue increased 38% last quarter, third-party seller services increased 55%, and North American revenue increased 39%. U.S. e-commerce sales grew about 37%, according to data from the U.S. Census Bureau.

While a couple of percentage points of outperformance might not seem like much, investors should consider how much Amazon already dominates the market. Continued gains in market share when Amazon already accounts for about 40% of online sales is quite impressive. It’s billions of dollars in absolute terms, which would amount to a considerable amount of growth at most of Amazon’s competitors.

The future favors Amazon

Consumers are planning to maintain their new online shopping habits in the future. Fifty-two percent of respondents said they plan to do more online shopping in the future than they did before the pandemic. That compares with 38% of respondents who expected to continue shopping more online in May.

More younger people expected to shop online more frequently in the future than older people. And younger people have also favored Amazon since the start of the pandemic. That should lead to continued share gains for Amazon over the next few years.

Most importantly, the response indicates a permanent acceleration in the shift to online commerce from in-store retail. That also bodes well for the future of Amazon.

While investors can’t expect total U.S. e-commerce to grow over 30% in 2021 and beyond, they should see Amazon’s gross merchandise volume continue to outpace the broader market, which historically grew around 15% per year. And as its marketplace services become more important and more people use its search engine more, it should see its high-margin businesses grow even faster than its retail operations. 

Amazon’s already producing strong profits amid the pandemic despite massive investments in safety protocols, personnel, and warehouses. When it can curb those investments, but sustain its outsize growth, it’ll reward investors with some massive operating profits.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Amazon’s holiday sales jump 60%
• Cyber Monday sales hit a record $10.8 billion
• 2 reasons Amazon will keep taking ad sales from Google
• How the biggest companies are the worst investments
• 10 most searched shares in Australia

Adam Levy owns shares of Alphabet (C shares) and Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and recommends the following options: short January 2021 $37 calls on eBay, long January 2022 $1920 calls on Amazon, long January 2021 $18 calls on eBay, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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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When the coronavirus morphed into a global pandemic earlier this year, virtually no ASX shares were spared.

Among the hardest hit in the February and March panic selling were ASX energy shares. With airplanes stuck on the tarmac, ships anchored in port, and cars parked in garages, the global demand for oil and gas evaporated. And investors tripped over each other to sell their energy shares.

Woodside Petroleum Limited (ASX: WPL), Australia’s largest independent dedicated oil and gas company, saw its share price crash 56% from the beginning of the year through to the 23 March lows.

Santos Ltd (ASX: STO), Australia’s second largest oil and gas company, fared even worse. Santos’ share price plummeted 67% from 2 January through to its own low on 19 March. That’s more than twice the losses of the broader S&P/ASX 200 Index (ASX: XJO), which fell 32% from the start of the year through to 23 March.

The first share price turnaround

While company management and the assets they own play a large role, ASX energy shares like Santos and Woodside are also highly correlated to the price of oil and gas. So, it’s no surprise that their shares were tumbling as Brent crude prices also fell to multi-year lows.

On 2 January, Brent crude was trading for US$66.25 (AU$90.30) per barrel. By 23 March, that had dropped to US$27.03 per barrel. And Brent would continue to sell off until 21 April, when it bottomed at US$19.33 per barrel.

From there Brent climbed rapidly. The black gold hit US$43.08 per barrel by 22 June as Europe and the US reopened for northern summer, and OPEC kept the brakes on any output hikes.

By 9 June, Santos’ share price was up 124% from its 19 March low. Woodside’s share price also soared into 9 June, up 64% from its 23 March trough.

From there, both shares lost ground through to the end of October, with Santos’s slipping 23% through to 1 November and Woodside shares falling 29%.

Meanwhile, Brent crude prices had fallen 13%, ending October back down at US$37.46 per barrel.

The second share price turnaround

Then came the announcements of not 1 but multiple likely effective vaccines.

With the prospect of a global reopening seemingly within sight, energy prices rallied. Brent crude has leapt 29% since 30 October, currently trading for US$48.25 per barrel.

As for our top ASX energy shares?

Woodside’s share price is up 30% since the beginning of November. And Santos’ share price is up 33%.

Now all eyes are on the Organisation of the Petroleum Exporting Countries (OPEC).

Will OPEC+ deliver more share price gains for Santos and Woodside?

OPEC+ (which includes Russia) is currently debating a new deal on its oil production limits in 2021.

Battling a surge in US shale oil production, OPEC+ had introduced significant production cuts before the pandemic struck. And the group has since extended those cuts, helping stem the oversupply during a time of much weaker demand.

The future of those cuts should be known by the weekend, as members meet again today (overnight Aussie time). And their decision is likely to have a significant impact on crude prices, and therefore the share prices of ASX 200 energy majors like Santos and Woodside.

As Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors LLC, puts it (quoted by Bloomberg):

At least in the short- to medium-term, it’s all been about OPEC. Demand is going to be hit for at least the next few months. If OPEC does not get an extension on the cuts and compliance of these cuts, oil could head a lot lower.

With both the Santos and Woodside share prices trending higher today, ASX investors will be keeping a close eye on OPEC’s pending announcement.

More reading

• Why ASX iron ore stocks like the Fortescue (ASX:FMG) share price are surging today
• ASX 200 up 0.3%: Fortescue rockets, Afterpay sales explode, Westpac APRA update
• Macquarie (ASX:MQG) share price lags on $2.3bn takeover
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 flat on Wednesday

Motley Fool contributor Bernd Struben 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.

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ASX iron ore stocks are on fire today and we can thank their Brazilian counterpart for this.

The Fortescue Metals Group Limited (ASX: FMG) share price surged 11.7% to a record high of $20.36 and is the best performing stock on the S&P/ASX 200 Index (Index:^AXJO) at the time of writing.

The BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price aren’t far behind. They both gained more than 4% each!

ASX iron ore stocks benefiting from Vale’s downgrade

A production forecast downgrade by rival Vale SA sparked the bullish optimism. The Brazil-based miner said it will only management to produce between 300 million and 305 million tonnes of iron ore in 2020.

This compares to its earlier forecasts of 310 million to 330 million, reported the Australian Financial Review.

Next year’s output is also lower than expectations with Vale predicting it will produce 315 million to 335 million tonnes.

Production cut triggers price rally

The production cut was doubly disappointing for Vale shareholders as some analysts were expecting it to upgrade production. It’s recent quarterly updates had pointed to rising volumes as Brazil tries to recover from the COVID‐19 disruptions.

The news sent the iron ore price jumping nearly 3% to over US$134 a tonne. The price of the commodity is up by 52.7% over the past 12 months.

The most-traded iron ore contract for January delivery on China’s Dalian Commodity Exchange surged as much as 3.5% to a record high of 934.50 yuan ($US142.44) a tonne, before ending daytime trade at 934 yuan, reported Reuters.

ASX iron ore miners are cum-upgrade

Experts think the price could keep rising into 2021 too as the iron ore market is expected to remain tight for at least six months.

We are likely to see consensus earnings upgrades for our iron ore majors too. Analysts have been assuming iron ore prices will fall from current levels.

Even at the prevailing spot price, the three majors would see substantial valuation uplifts.

It isn’t only the three ASX iron ore giants that’s running hot today too. The latest ASX iron ore exposed stock, the Deterra Royalties Ltd (ASX: DRR) share price, jumped 4.3% to a high of $4.96 during lunch time trade.

Geo-political implications

The misfortunes of Vale come at a time when relations between China and Australia is the worst it has ever been too.

This could put some power back into the hands of the Morrison government in the wake of China’s tariff war on Aussie coal, wine, barley and timber.

More reading

• Why Flight Centre, Fortescue, Kogan, & Telix shares are racing higher
• ASX 200 up 0.3%: Fortescue rockets, Afterpay sales explode, Westpac APRA update
• Macquarie (ASX:MQG) share price lags on $2.3bn takeover
• 2 high yield ASX dividend shares to buy
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Deterra Royalties Ltd and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

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.

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The AppsVillage Australia Ltd (ASX: APV) share price has been on fire on Thursday after returning from its trading halt.

At one stage today, the Software-as-a-Service (SaaS) solutions provider for small and medium sized businesses saw its shares rise a remarkable 134% to 22.5 cents.

The AppsVillage share price has since given back a good portion of these gains, but is still up 87.5% to 18 cents currently.

Why is the AppsVillage share price rocketing higher?

Investors have been scrambling to buy the company’s shares after it announced an agreement with leading video-sharing social networking platform TikTok.

This deal will allow its small to medium sized business customers to advertise on the TikTok platform via AppsVillage’s advertising campaign manager, JARVIS.

According to the release, JARVIS for TikTok will provide an optimised solution for small businesses to quickly and easily create and manage intelligent online advertising and promotion campaigns in a matter of minutes.

This follows TikTok’s decision to launch its self-serve advertising platform in July, which is focused on encouraging and increasing the advertising spend and reach of small and medium businesses.

What will AppsVillage earn from this?

AppsVillage currently has approximately 4,500 small businesses as paying customers. They will now have the ability to advertise on the TikTok platform via JARVIS.

Though, it is worth noting that these businesses already had the ability to advertise via TikTok by going direct. The JARVIS campaign manager merely makes the process easier.

Management expects to achieve a gross profit on every advertisement made via JARVIS on TikTok. And while it couldn’t reveal the exact terms for commercial reasons, it expects to add “between 15-30% of the amount charged by TikTok to the Company.”

It added: “The actual revenue the Company will receive is based on TikTok advertising by APV’s current and new customers (SMBs). However, given the popularity of TikTok and as such, its ability to drive revenue for SMB’s, the Company expects that it will see material revenue over time from this new strategic partnership.”

More reading

• Why ASX iron ore stocks like the Fortescue (ASX:FMG) share price are surging today
• 3 reasons why Brickworks (ASX:BKW) shares are a buy for dividends
• Why Flight Centre, Fortescue, Kogan, & Telix shares are racing higher
• Kelly Partners (ASX:KPG) share price surges up on deal with Austbrokers
• ASX 200 up 0.3%: Fortescue rockets, Afterpay sales explode, Westpac APRA update

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.

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Brickworks shares are popular for dividends. This article will outline three reasons that supports Brickworks as an income option.

Reason 1: Attractive dividend characteristics

The Brickworks dividend yield is materially higher than the official interest rate which the Reserve Bank of Australia (RBA) maintained at just 0.10% this month.

At the current Brickworks share price of $19.66 it has a trailing grossed-up dividend yield of 4.3%. That’s based on FY20’s annual dividend of $0.59 per share. If the Brickworks board decide to increase each half-year payment by 1 cent per share over FY21, it would result in an annual dividend of $0.61 per share which would equate to a grossed-up dividend yield of 4.4%.

Brickworks hasn’t cut its dividend in over 40 years, which is one of the longest records on the ASX. However, it hasn’t increased its dividend every time since then – there were some years where the dividend was maintained.

Reason 2: Defensive and growing assets

Brickworks has two segments represented by defensive and growing assets. One part is represented by ‘investments’.

The segment that’s grabbing more of the headlines at the moment is its industrial property trust that it shares 50% of in a joint venture along with Goodman Group (ASX: GMG).

The Sydney site at Oakdale West is where the property trust is building a huge distribution facility for Amazon which is scheduled for completion in September 2021. Brickworks has also indicated that works are going as planned for the other large distribution warehouse that it is building for Coles Group Ltd (ASX: COL) with construction likely to commence in early 2021.

The ASX dividend share said that once these two distribution warehouses are fully done, the net rental distributions will grow by more than 25%. The gross value of the assets owned by the property trust are projected to be more than $3 billion. After that, Brickworks thinks there’s still enough land for at least another five years of development.

Brickworks managing director Lindsay Partridge said: “The COVID-19 pandemic has only accelerated industry trends towards online shopping, and this is fuelling demand for the company’s prime industrial property. Interest from potential new tenants is strong, with discussions well underway with several parties in relation to additional leasing opportunities within the property trust.”

Reason 3: Recovering property market

Whilst Brickworks non-construction assets make up most of the underlying asset value of the business, its building products segments also influence the Brickworks share price and profit.

In a recent update to the market, management said that its Australian building products division has made a strong start to FY21. The first quarter earnings are actually well ahead of the prior corresponding period.

Its home builder customers have a good pipeline of work for the remainder of the financial year, which is being helped by the various government stimulus measures currently in place across the country. However, Western Australian trading conditions are still hard for the company.

Brickworks is investing a large sum of money into building a new brick plant. At Horsley Park, Brickworks has demolished the old brick kiln and associated equipment at the second plant, which will allow the construction of a new $125 million face brick plant. Brickworks believes this will be the most advanced brick plant ever built when completed.

However, in the North American market things aren’t going to management expectations because of COVID-19 impacts. The deferral of many projects by state authorities due to financing concerns and the uncertainty relating to the US election have caused a slowdown in non-residential construction activity.

Despite that, Brickworks said that it was pleased with the underlying performance of the US business and the progress it has achieved over the past two years.

More reading

• 3 ASX dividend shares to buy in December
• What is a holding company?
• 3 ASX dividend shares rated as buys
• 3 ASX shares with large dividend yields
• Is the Brickworks (ASX:BKW) share price a buy?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.2% to 6,603.5 points.

Four shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has climbed 2% to $17.61. This may have been driven by news that the UK is going to start rolling out the Pfizer COVID-19 vaccine next week. There is also speculation that the vaccine could be released sooner than expected in Australia. This could be a big boost to global travel markets.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has jumped 11.5% higher to $20.33. Investors have been buying Fortescue and other iron ore producers after the spot price of the steel making ingredient climbed to a six-year high. The catalyst for this was news that mining giant Vale is expecting to produce less iron ore than previously expected in the near term. This could keep prices higher for longer.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up over 7% to $17.29. This strong gain has been driven by news that Kogan has acquired 100% of the issued capital of leading New Zealand-based online retailer Mighty Ape for A$122.4 million. Mighty Ape operates online stores in New Zealand and Australia and has a focus on gaming, toys, and other entertainment categories. It has more than 690,000 unique customers and is expecting to generate revenue of A$137.7 million in FY 2021.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up almost 3% to $4.11 after the release of yet another announcement this morning. It revealed details from the pre-Investigational New Drug (IND) meeting with the United States Food and Drug Administration (FDA) in relation to its prostate cancer therapy product TLX591. Telix Chief Medical Officer, Dr Colin Hayward noted: “The valuable feedback Telix has received from our November meeting with the FDA has helped Telix to finalize the clinical development roadmap for TLX591.”

More reading

• ASX 200 up 0.3%: Fortescue rockets, Afterpay sales explode, Westpac APRA update
• Why has the Telix (ASX:TXL) share price shot up 5% today?
• Kogan (ASX:KGN) share price storms higher on $122m Mighty Ape acquisition
• After a record November, what’s next for ASX 200 shares?
• Why Rio Tinto (ASX:RIO) and 2 other ASX iron ore mining shares sit at record highs

James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Kogan.com 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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Insurance broker AUB Group Ltd (ASX: AUB) and accounting company Kelly Partners Group Holdings Ltd (ASX: KPG) announced a new partnership today.

In the deal, Austbrokers (owned by AUB Group) will offer insurance products to Kelly Partners’ clients, while Kelly Partners will provide accounting services to Austbrokers’ clients.

In early trade, the Kelly Partners share price surged up 8% to $1.76 before retreating to $1.70, up 4.29%, at the time of writing. The AUB Group share price rose slightly at open but is now trading flat at $17.02.

Details of the deal

The companies announced that a new operation, called ‘Austbrokers Kelly and Partners’, will market and deliver insurance broking services to Kelly Partners’ 8,000 members and clients.

This new operation will be owned 50% by AUB, and 50% by a Kelly Partners controlled entity. 

In the reciprocal agreement, Kelly Partners will provide accounting and tax services to Austbrokers’ 700,000 clients and members. 

Given the much larger size of the AUB Group, the deal seems to have provided more benefits to Kelly Partners.

Kelly Group’s chief executive welcomed the joint venture, saying that the “partnership will significantly grow the company’s client base and revenue streams”.

What’s happening at AUB Group?

AUB chief executive Mike Emmet said the partnership was a “natural next step in the relationship between two organisations with similar DNA”.

AUB Group will reinvest 50% of the partnership profits back into the combined operations. However, it does not anticipate the new partnership to result in a material uplift in its underlying net profit after tax for FY21. 

Today’s announcement follows the company’s recent active expansion of its revenue base. Just two days ago, AUB Group announced its acquisition of 360 Underwriting Solutions for $127 million. AUB said that the deal would allow the company to strengthen and expand the scale of its agencies business.

Share price movements in 2020

The AUB Group share price has increased by 85% since its low of $9.20 back in March. The share price is 40% higher on a year-to-date basis, and has a 52-week high of $18.10.

Meanwhile, the Kelly Partners share price has risen by 76% this year, and is currently closing on its 52-week high of $1.79.

Based on the current share prices,  AUB Group commands a market capitalisation of around $1.2 billion, while Kelly Partners has a market value of $74 million.

More reading

• AUB Group (ASX:AUB) share price falls on acquisition deal
• AUB Group (ASX:AUB) share price higher after upgrade for FY21

Motley Fool contributor Eddy Sunarto 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.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. The benchmark index is currently up 0.3% to 6,610.3 points.

Here’s what is happening on the market today:

Iron ore producers storm higher.

The resources sector is playing a key role in driving the ASX 200 higher on Thursday. A solid rise in the spot iron ore price overnight has led to the likes of BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) storming higher today. The latter is up a massive 11.5% at the time of writing. According to CommSec, the benchmark iron ore price is trading at a six-year high of US$136.75 a tonne.

Afterpay update.

The Afterpay Ltd (ASX: APT) share price is dropping lower today despite the release of a positive trading update. That update revealed that global underlying sales in November reached $2.1 billion. This represents a 112% increase on the same period last year. This was driven by a very successful Black Friday and Cyber Monday promotional period. Afterpay’s growth was particularly strong in the United States. This side of the business delivered the highest level of monthly underlying sales ever across all the regions. US consumers made $1 billion of purchases through its platform during the month.

Westpac’s enforceable undertaking.

The Westpac Banking Corp (ASX: WBC) share price is edging lower after advising that it has entered into an enforceable undertaking with the Australian Prudential Regulation Authority (APRA) in relation to risk governance remediation. Westpac’s CEO, Peter King, has acknowledged that significant work is required to address the bank’s shortcomings and is determined to deliver on its risk remediation activities.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Fortescue share price with its 11.5% gain. This follows a solid rise in the iron ore price overnight. The worst performer has been the Super Retail Group Ltd (ASX: SUL) share price with a 3% decline. This is despite there being no news out of the retailer.

More reading

• Macquarie (ASX:MQG) share price lags on $2.3bn takeover
• Will the Afterpay (ASX:APT) share price hit new highs?
• 2 high yield ASX dividend shares to buy
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 flat on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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This article is about two ASX shares that are seeing a turnaround after the lockdowns and restrictions caused by COVID-19.

For some industries there was a sharp increase in activity earlier in 2020. Companies like JB-Hi Limited (ASX: JBH), Kogan.com Ltd (ASX: KGN) and Wesfarmers Ltd (ASX: WES) saw strong revenue growth start earlier in the year.

There are also some businesses that saw initial weakness earlier in the year but are now recovering.

Here are two examples:

Serko Limited (ASX: SKO)

Serko describes itself as a leader of online travel booking and expense management business.

Today, the company announced it intends to provide periodic updates to assist the market to assess changes to the environment it operates in.

Serko said it has seen a gradual improvement in transaction booking volumes after the easing of domestic travel restrictions within Australia over the past couple of weeks.

Transaction volumes increased to 44% of prior year volumes for the month of November. This was an improvement from 35% of prior year volumes for the month of October. Serko revealed that the past week has seen some daily transaction rates around 50% of prior year volumes.

New Zealand domestic travel increased to 85% of prior year volumes for the month of November, which was an increase from 76% of prior year volumes for the month of October. Australian domestic travel increased to 33% of prior year volumes for the month of November, up from 26% of prior year volumes for October.

The ASX share said it was pleased to see Australian travel bookings start to recover with the current easing of domestic travel restrictions.

The travel company also confirmed that new customers in select global (predominately English-speaking) markets are now being directed to the new Booking.com for business platform powered by Zeno.

Fund manager Wilson Asset Management recently outlined that Serko was a position in one of its funds called WAM Microcap Limited (ASX: WMI).

Bapcor Ltd (ASX: BAP)

Bapcor is the biggest Australasian auto parts business with major networks in Australia and New Zealand. It also has a small, but growing network in Thailand.

A significant part of the normal demand for Bapcor products is to replace parts that broke due to wear and tear. The lockdowns earlier in the year saw traffic significantly reduce. Bapcor decided to launch a capital raising to ensure its balance sheet remained strong enough.

In recent months the ASX share has seen growth rebound strongly. This was confirmed recently when Bapcor announced a trading update.

Burson Trade revenue was up 10%, with same store sales growth of 7.7% – it was up 17% excluding Victoria. New Zealand revenue grew by 6% on same store sales growth of 4%. Retail revenue soared 47% higher, with Autobarn same stores sales going up 36%. Finally, specialist wholesale revenue went up 45%, though excluding acquisitions revenue went up 18%. Overall, group revenue went up by 27%.

In that update the Bapcor CEO Darryl Abotomey spoke of the company’s defensive qualities: “The automotive market is a resilient industry and historically has performed strongly in difficult economic circumstances. Recent trading is another example of its resilience assisted by the increase in sales on second hand cars, reduction in use of public and shared transport modes as well as government stimulus.”

At the current Bapcor share price it’s trading at under 18x FY23’s estimated earnings with a trailing grossed-up dividend yield of 3.5%.

More reading

• Serko (ASX:SKO) share price on watch after trading update
• 2 turnaround ASX shares rated as buys by leading fundie
• 3 ASX dividend shares to buy in December
• 4 ASX growth shares to buy in December
• Is the Bapcor (ASX:BAP) share price a buy?

Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Serko Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Kogan.com ltd and Serko 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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