Tag: Motley Fool Australia

The Webjet Limited (ASX: WEB) share price will be on watch on Thursday after it followed the lead of rival Flight Centre Travel Group Ltd (ASX: FLT) by bolstering its liquidity.

What did Webjet announce?

This morning the online travel agent announced the successful pricing of an offering of 100 million euros (A$163.1 million) convertible notes due in 2027.

Webjet’s Managing Director, John Guscic, explained: “This Offering supports our ongoing focus on maintaining a strong balance sheet as we continue to navigate the challenging operating environment caused by COVID-19.”

The chief executive expects the notes to diversify the company’s funding sources and increase its financial and strategic flexibility. He also believes it will put Webjet in a position to take advantage of any opportunities in the future.

He added: “We continue to believe the strength of Webjet’s capital position in the current uncertain environment will provide a strategic advantage longer term, enabling the Company to execute its strategy and take advantage of opportunities as they arise.”

What will the funds be used for?

The company will use the proceeds to repay $50 million of its existing term debt, whilst extending remaining term debt maturity into late 2022. It will also use some of the proceeds for potential acquisitions and ongoing capital management.

Though, management notes that there is no agreement or understanding with respect to any potential acquisitions or investments at this time.

Trading update.

Webjet also released a trading update with its offering. It advised that, as expected, its total transaction value (TTV) and revenue in April and May 2020 were nominal.

And while the company has started to see some booking activity in its Australian OTA and WebBeds businesses, it expects any revenue contribution in the near term to only be modest.

It also advised that its operating costs from April 2020 to the end of June 2020 were averaging $15 million month. This is a reduction of approximately $13 million per month from pre COVID-19 expenditure.

Finally, on another note, Webjet has just announced an agreement with Afterpay Ltd (ASX: APT), which will see it offer customer buy now pay later options. It is available on flight, hotel, and package bookings up to $2,000.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes 0.6% higher, Aussie house prices fall
• These ASX 200 shares were the worst performers of FY20
• Webjet and these shares were the worst performers on the ASX 200 in June
• ABS reveals which industries (and ASX shares) may rebound hard after COVID-19

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group 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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The ASX healthcare sector continues to be one of the top-performing market sectors. The demand for healthcare products and services only continues to grow. An ageing global population and continuing advances in healthcare treatments and technology are driving this demand.

Here we examine 2 of my top ASX healthcare shares picks right now: Nanosonics Ltd. (ASX: NAN) and Ansell Limited (ASX: ANN).

Nanosonics

Nanosonics manufactures and distributes market-leading disinfection system for ultrasound probes. Its core product is the trophon EPR disinfection system, which has gained industry reputation as the market leader.  The device is fully automated, quick to use and does not require chemicals.

As well as selling the trophon system product units, the company also sells a range of ancillary products. These recurring consumables grow additional strong revenues over time, in line with the growth of its installed core product unit. This results in a strong combined revenue stream. Nanosonics recorded revenue of $48.5 million for the first half of FY 2020. This was an increase of 19% on the prior corresponding period (pcp).

The company has strong geographic diversification. Its overseas markets generate 90% of its revenue. Nanosonics continues to grow revenue very strongly in its largest market, the US. It is also seeing strong growth across Asia, Europe and the Middle East.

Nanosonic’s strategic priorities moving forward focus on 4 core areas. This includes continuing to establish trophon technology as the industry standard in its operating markets. This ASX healthcare share will also look at expanding and investing in new markets.

Nanosonics could capitalise on the growing global trend towards stricter disinfection control over the next 5–10 years. Globally, more and more health agencies are taking measures to enforce stricter policies to protect against hospital-acquired infections.

Ansell

Ansell is involved in the development, manufacturing and sale of gloves and protective personal equipment in the industrial and medical markets. It has broad geographic and customer diversity with sales operations in over 50 countries. Also, most of its new product lines are patentable and must comply with ever-increasing regulatory standards. This further strengthens its competitive position.

A business update in late March revealed a high demand for its hand and body protection products. These products are industry certified for protection against infections such as the coronavirus.

Ansell is well-positioned to grow over the next decade through rising demand for protective personal equipment in the healthcare segment. 

Ansell shares are currently trading on a forward dividend yield of 1.9%, unfranked.

More reading

• These 3 ASX healthcare shares are at all-time highs!
• 2 shares to buy before earnings season
• Top ASX Stock Picks for July 2020
• 10 high quality ASX shares to buy in FY 2021
• The best placed ASX stocks for the August reporting season

Phil Harpur owns shares of Nanosonics Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Ansell Ltd. and Nanosonics 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) made it two days in a row of solid gains. The benchmark index climbed 0.6% to 5,934.4 points.

Will the market be able to build on this on Thursday? Here are five things to watch

ASX 200 expected to push higher.

It looks set to be another positive day of trade for the ASX 200. According to the latest SPI futures, the benchmark index is poised to rise 40 points or 0.7% at the open. This follows a reasonably positive night of trade on Wall Street. Although the Dow Jones fell 0.3%, the S&P 500 rose 0.5% and the Nasdaq jumped 0.95%. The latter index closed at a record high.

Pfizer coronavirus vaccine update.

U.S. markets were given a lift overnight after the release of an update on a study of a coronavirus vaccine candidate. The study of BNT162b1, which is being developed by Pfizer and BioNTech, showed that the drug created neutralising antibodies. However, at this stage the results have not been reviewed by a medical journal. If the vaccine is successful and gets regulatory approval, Pfizer expects to manufacture upwards of 100 million doses by the end of the year.

Oil prices rebound.

It could be a good day of trade for energy producers such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) after oil prices jumped higher. According to Bloomberg, the WTI crude oil price is up 1.2% to US$39.73 a barrel and the Brent crude oil price has climbed 1.6% to US$41.92 a barrel. A drawdown in U.S. crude inventories from record highs and some positive manufacturing data supported oil prices.

Gold price tumbles.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after a pullback in the gold price. According to CNBC, the spot gold price has dropped 1.1% to US$1,780.40 an ounce after stronger than expected economic data.

Webjet raises funds.

The Webjet Limited (ASX: WEB) share price will be on watch today after the release of a late announcement on Wednesday. The online travel booking company revealed that it is launching an offering of A$163 1 million convertible notes. These notes will be due in 2027.  The company’s Managing Director, John Guscic, commented: “This Offering supports our ongoing focus on maintaining a strong balance sheet as we continue to navigate the challenging operating environment caused by COVID-19.”

More reading

• ASX 200 finishes 0.6% higher, Aussie house prices fall
• Australian property prices fell again in June. Will the drop continue?
• These ASX 200 shares were the worst performers of FY20
• These 3 ASX healthcare shares are at all-time highs!
• ASX 200 up 0.9%: Big four banks rising, NEXTDC rockets higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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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Fortunately, in this low interest rate environment, there are a good number of dividend shares offering investors generous yields.

Two dividend shares that I would buy right now instead of a term deposit are listed below. Here’s why I think they are great income options:

BWP Trust (ASX: BWP)

As the largest owner of Bunnings Warehouse sites in Australia with 68 leases, I believe BWP could be a property trust to buy. This is because I believe that Bunnings is one of the highest quality businesses in the country and well-positioned to continue its growth through the pandemic and over the coming years. Especially given how the government is supporting the construction industry with renovation grants.

I believe this should make it easier for BWP to collect rent as normal at a time when other retail property companies are struggling to do so. At present I estimate that the company’s shares offer investors a 4.8% FY 2021 dividend yield.

Rural Funds Group (ASX: RFF)

Another property company which I think would be a great option for income investors is Rural Funds. It has a focus on agricultural properties and owns a diverse range of assets across several different industries. These include cattle, vineyards, and orchards. Due to the nature of these industries, its tenants generally sign long term leases. And as these leases tend to contain fixed rental increases, the company has great visibility with its future earnings and distributions.

As a result, it has already provided its guidance for FY 2021. Next year Rural Funds intends to increase its distribution to 11.28 cents per share. This works out to be a forward 5.6% distribution yield. Overall, I think this makes Rural Funds a great dividend share to own in the current environment.

More reading

• 10 FY21 ASX share picks revealed by Bell Potter
• 3 top ASX dividend shares to buy for FY21
• Why I would buy these high yield ASX dividend shares
• 5 things to watch on the ASX 200 on Monday
• 3 fantastic ASX dividend shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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 morning analysts at Goldman Sachs released a note with their appraisal of the Australian supermarket industry and Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

What did Goldman Sachs say?

The broker notes that things have changed greatly in the industry since the onset of the pandemic.

Goldman commented: “Since then the industry outlook has drastically changed due to: Consumption habits shifting towards home consumption due to temporary closure of restaurants, social distancing requirements and the virus scare in general; Travel restrictions, particularly overseas travel, leading to a potential shift in tourism spending and a slowdown in the Australian resident population growth and; a changed macro environment with recessionary conditions expected in the short term.”

The broker was expecting industry growth of 4.5% per year over the medium term. This comprised inflation of +2.5% and volume growth of +2%.

However, it has now revised its forecasts lower largely because of a slowdown in population growth due to lower overseas migration.

Its analysts explained: “We expect industry growth in FY21 to be constrained to 2.4% vs. 10 year average of +3.8%. If sustained, slower population growth (migration) could detract from FY22 growth as well.”

Should you buy Coles or Woolworths?

Despite downgrading its industry growth forecasts, Goldman Sachs remains very positive on Coles.

Its analysts have retained their conviction buy rating with a slightly reduced price target of $18.50. This implies a potential return of 9.5% over the next 12 months without dividends and approximately 13.3% including them.

The broker is a little less positive on Woolworths for valuation reasons. It has retained its neutral rating and has a $36.80 price target on the company’s shares. This compares to its last close price of $36.90.

While I think that both companies are arguably in the buy zone, I would have to agree that Coles is the better option of the two. I feel its shares offer a compelling risk/reward at the current level.

More reading

• 3 top ASX dividend shares to buy for FY21
• Can the Coles share price climb 12% again in July?
• Morgans picks the best FY21 ASX buys for the COVID-19 world
• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses
• Is it time for a plan B with ASX 200 shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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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If you’re interested in adding some growth shares to your portfolio, then I think the three named below could be great options.

I believe all three are well-positioned to deliver above-average earnings growth over the next few years and could generate strong returns for investors.

Here’s why I would invest $3,000 across the three:

Bubs Australia Ltd (ASX: BUB)

The first growth share to look at is this vertically integrated producer of goat’s milk-focused infant formula and baby food products. While I’m not sure whether it will ever be as successful as a2 Milk Company Ltd (ASX: A2M), I do see a lot of similarities. For example, around five years ago a2 Milk Company was a loss-maker and people were questioning the investment proposition. Fast-forward to today and a2 Milk Company is a highly profitable business and growing at an extraordinary rate. Could the same happen with Bubs? Well, after several years of operating at a loss and burning through cash, the company has just become cash flow positive. I’m optimistic this is a sign that it has now reached a scale which will make its operations more and more profitable over the coming years. This could make it a great long term option for growth investors.

Megaport Ltd (ASX: MP1)

Another growth share to consider buying is this elasticity connectivity and network services company. Megaport’s increasingly popular service allows its customers to increase and decrease their available bandwidth in response to their own demand requirements. A good example of this is an airport. It can increase its bandwidth during busy parts of the day and then decrease it when its terminals are quiet. This means the airport doesn’t need to be tied to a fixed service level on long-term and expensive contracts. Demand for its offering has been growing strongly, leading to stellar recurring revenue growth. I expect this trend to continue for some time to come thanks to the cloud computing boom.

PolyNovo Ltd (ASX: PNV)

A final growth share to consider buying is this exciting medical device company. I think it could have a very bright future thanks to its NovoSorb Biodegradable Temporising Matrix (BTM) product. This was developed at CSIRO and is a wound dressing intended to treat full-thickness wounds and burns. It currently has a sizeable $1.5 billion market opportunity, but management is intent on expanding its usage into the hernia and breast treatment markets. If this is successful, it could be very lucrative. Management estimates that these markets would add $6 billion to its addressable market.

More reading

• These are 2 quality ASX shares to buy with $2,000
• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Why I’d buy and hold a2 Milk shares until 2025
• Top ASX Stock Picks for July 2020
• The top 10 performing ASX shares over the past year

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 BUBS AUST FPO, MEGAPORT FPO, and POLYNOVO FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO and MEGAPORT 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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American e-commerce giant Amazon.com, Inc (NASDAQ: AMZN) has certainly garnered its fair share of fans. The online giant morphed from a garaged online book retailer to one of the largest global companies. All this in the past 2 decades.

This has no doubt been a joyful experience for anyone who has bought Amazon shares along the way. Just 5 years ago, Amazon shares were US$443. Today, those same shares will set you back US$2,759 each.

But Jeff Bezos’ baby has attracted its fair share of critics, too. And that’s perhaps why we are hearing mixed views about the company’s plans to build a new ‘robotics fulfilment centre’ in Sydney’s western suburbs. 

Amazon expands its Aussie footprint

According to reporting in BusinessInsider, the company already has 4 of these ‘fulfilment centres’ (also known as distribution warehouses) in the country. But the new Sydney centre looks likely to be Amazon’s largest investment in Australia to date. The warehouse is set to occupy 200,000 square metres over 4 levels and house around 11 million items. It will be constructed in partnership with ASX companies Goodman Group (ASX: GMG) and Brickworks Limited (ASX: BKW).

The report states Amazon faced past criticism for excessive automation in fulfilment centres, heavily relying on ‘robots’ instead of human workers. Amazon also denied reports of increased rates of worker injury through higher automation levels

These issues seem pertinent to NSW taxpayers with Amazon reliant on NSW government grants to build the centre. The report also quotes an investigation by Reuters, which has found that after initially being operated by human workers, Amazon’s US-based fulfilment centres have been increasingly automated in recent years, which has cost around 1,300 jobs across 55 centres.

However, BusinessInsider quotes Amazon Australia’s director of operations Craig Fuller, who calls the new centre an “employment creator”:

“We know from our experience of launching Amazon robotics buildings in other countries that we actually make jobs. Since we started launching robotic sites, we’ve created around about 300,000 jobs… We still need people to maintain and look after the robots.”

Should ASX investors pay attention?

Despite what you may think of Amazon’s business practises, it looks as though the e-commerce giant is here to stay. Especially as the government has effectively rolled out the red carpet. Whilst many ASX investors may not want to invest in Amazon directly, Goodman Group and Brickworks shares seem worth another look. Especially after these developments.

REITs (real estate investment trusts) have been on the nose in recent times for ASX investors. But I think investing in the future of e-commerce (as Goodman Group and Brickworks are doing) is a smart path to explore.

More reading

• Why Avita, Brickworks, Fisher & Paykel Healthcare, & WiseTech Global are tumbling lower
• Telstra and this ASX 200 share could be top picks for retirees
• Why James Hardie and its peers are surging higher today
• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses
• Why Brickworks, Collins Foods, Corporate Travel, & Fisher & Paykel Healthcare are shooting higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended 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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We have just entered FY21 and there are plenty of ASX share investment opportunities.

Bell Potter is one of the leading brokers in the country, with Bell Financial Group Ltd (ASX: BFG) being the parent company.

The broker released the names of lots of different opportunities in different sectors, both large caps and small caps. So, I’m going to cover 10 of them in this article:

Banks 

Share 1: Macquarie Group Ltd (ASX: MQG)

Why it’s pick: The global investment bank has $25 billion of capital to be deployed into infrastructure and other assets. If it weren’t for COVID-19 then the profit could have been up 4% in FY20.

My view: Macquarie is one of my preferred ASX share blue chips for its international growth and quality.

Share 2: Commonwealth Bank of Australia (ASX: CBA)

Why it’s pick: Bell Potter thinks that underlying CBA income should be stable with sufficient capital on the balance sheet. Asset sales are lifting its CET1 ratio. There could still be a $1 per share dividend paid in August.

My view: CBA is my preferred ASX bank share. Quality is key to thrive through periods like this.

Diversified financials

Share 3: Afterpay Ltd (ASX: APT)

Why it’s pick: It’s in an upgrade cycle. Continued success at integrating with other e-commerce players like Visa, Mastercard and so on will be important. Geographic expansion will help too, such as growth into Canada.

My view: At a share price above $62 I’m not sure Afterpay represents good value. It has run really hard and margins could come under pressure in the future.

Shares 4, 5 and 6: Janus Henderson Group (ASX: JHG), Pendal Group Ltd (ASX: PDL) and Perpetual Limited (ASX: PPT)

Why it’s pick: These fund managers seem relatively cheap ASX shares, they still pay healthy dividends and are about to show a good increase in funds under management (FUM) as share markets had a strong quarter to 30 June 2020.

My view: I agree that these fund managers could prove to be performers over FY21 as share markets recover. However, I’m not sure about the long-term as passive investing continues to capture a lot of fund flow.

Listed investment companies and trusts (LICs and LITs) 

Share 7: MFF Capital Investments Ltd (ASX: MFF)

Why it’s pick: Low operating fees, a large cash balance and a big franking credit balance could help deliver good returns over the next 12 months.

My view: I concur, I have said for a long time that MFF Capital is one of the best LICs out there. Chris Mackay is a great portfolio manager.

Share 8: Magellan Group Trust (ASX: MGG)

Why it’s pick: The ASX share can provide investors with diversification whilst also being focused on the biggest and best internet, ecommerce, technology and payment companies. It produces strong returns and is trading at a discount to its assets. 

My view: I believe the LIT could be one of the best-performing ones over the next decade. The Magellan team are great investors and are capable of consistently outperforming the benchmark and peers.

Share 9: WCM Global Growth Ltd (ASX: WQG)

Why it’s pick: The LIC has delivered a strong performance over the past 12 months, yet it’s trading at a sizeable discount to its net assets. The LIC is well positioned for whatever happens next with COVID-19. For example, its largest holding at the end of May 2020 was Shopify.

My view: I love buying ASX shares for less than they’re worth. I like the idea of buying quality LICs trading at an attractive discount, particularly when they’re invested in great shares themselves.

Agriculture

Share 10: Rural Funds Group (ASX: RFF)

Why it’s pick: The agricultural real estate investment trust (REIT) is shifting to natural resource assets which are appreciating rather than depreciating in value, which also have market linked rental reviews. Over time Bell Potter expects favourable asset revaluations and growth in rental income as capital is deployed in newly acquired assets.

My view: Rural Funds is favourite REIT of the sector. I think it has pleasing income growth qualities as well as a solid tenant base. It may have the best chance in the sector of increasing its distribution over the next 12 months.

More reading

• Australian property prices fell again in June. Will the drop continue?
• 3 top ASX dividend shares to buy for FY21
• The latest ASX stocks to be upgraded by brokers to “buy”
• These 2 ASX tech shares show stellar growth prospects
• Millionaire maker increases share price 28 times in FY20

Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd, MAGLOBTRST UNITS, and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and RURALFUNDS STAPLED. 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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The S&P/ASX 200 Index (ASX: XJO) finished the day higher today by 0.6%.

Investor eyes continue to focus on the growing COVID-19 numbers in Melbourne.

Nextdc Ltd (ASX: NXT) shares grow

Out of all the ASX 200 shares, Nextdc saw the biggest rise today with a share price rise of almost 8%.

What happened? It announced material contract wins in New South Wales. Contracted commitments in NSW have risen by approximately 4MW to more than 36MW. This means contracted customer commitments plus expansion options at NSW data centres are now approaching 60MW.

Due to the new customer commitments, Nextdc has committed to completing the S2 fit-out to a total planned capacity of 30MW.

Revenue recognition for the new contracted commitments is expected to commence during FY21 after completion and commissioning of the associated data halls.

House prices fell faster in June 2020

The CoreLogic Home Value Index showed a second consecutive decline of national house prices. The national index showed a 0.7% drop in June.

Melbourne and Perth showed the heaviest declines of 1.1% each over the month. Sydney prices fell 0.8%, Brisbane prices dropped 0.4% and Adelaide registered a 0.2% fall. However, both Hobart and Darwin saw growth of 0.3% and Canberra managed an increase of 0.1%.

CoreLogic head of research, Tim Lawless, warned about what may happen down the road: “While it is encouraging to see lenders have recently hinted at an extension in their repayment leniency policies, the government stimulus will eventually taper and banks will require borrowers to repay their loans.  The longer term outlook for the housing market is largely dependent on how well the economy is tracking when these support measures are removed.”

Suncorp Group Ltd (ASX: SUN) new model doesn’t impress

The ASX 200 insurance business was one of the worst performers today. The Suncorp share price went down 4% after announcing changes.

There will be two people in charge of the Australian insurance division. One will focus on the underwriting, distribution, brands, marketing, product design and innovation. The other executive will be responsible for all aspects of claims management and operations.

Suncorp is also going to combine a number of the insurance and group functions to create a more streamlined and efficient organisation.

Clive van Horen has been appointed to the vacant CEO of banking and wealth division.

The ASX 200 company also announced that the FY21 natural hazard allowance is expected to increased by $90 million to $130 million. The FY21 main catastrophe reinsurance program is going to be finalised with a similar structure to previous years, with new aggregate excess of loss cover purchased for FY21 providing $400 million of cover for events in excess of $5 million once the retained cost of these events reaches $650 million.

ASX travel shares jump

Aside from Victoria, the other Australian states look like they’re in good shape to resume travel again.

The Corporate Travel Management Ltd (ASX: CTD) share price went up almost 8%.

The Webjet Limited (ASX: WEB) share price climbed around 7.5%.

Flight Centre Travel Group Ltd (ASX: FLT) announced today it has access to a debt facility of up to GBP 65 million from the Bank of England. It will be used as and when required to help offset the COVID-19 impacts in the UK. The Flight Centre share price rose 3% today.

The Qantas Airways Limited (ASX: QAN) share price went up 2.4% and the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price rose 1.2%.

ASX 200 declines

Trading has begun for the new telcos on the ASX. Singapore-based telco Tuas Limited (ASX: TUA) suffered a share price decline of 24% after it was divested from TPG Corporation Ltd (ASX: TPM). According to the ASX, the new entity called TPG Telecom Ltd (ASX: TPG) suffered a share price fall of around 4% today.

More reading

• These ASX 200 shares were the worst performers of FY20
• This ASX airliner is flying under the radar
• The latest ASX stocks to be upgraded by brokers to “buy”
• Top brokers name 3 ASX 200 shares to buy today
• ASX 200 up 0.9%: Big four banks rising, NEXTDC rockets higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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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Whilst we Fools normally preoccupy ourselves with the performance of the ASX sharemarket and the S&P/ASX 200 (INDEXASX: JXO), we also take a look at the property prices and the housing market from time to time.

The property market is an important economic barometer that has far-reaching implications for the economy and the ASX. Up until now, we haven’t been able to get a good grasp of how the coronavirus pandemic has really effected long-term house prices. But new reporting from BusinessInsider has shed some light on the 2020 housing market as we start a new financial year today.

The BusinessInsider report quotes new data from research firm, CoreLogic. This data shows national property prices fell an average of 0.7% over the month of June. This is nearly double the 0.4% drop we saw over May. On average, capital city property prices declined by 1.3%.

Sydney, Perth and Melbourne house prices experienced the worst falls, with milder drops in Brisbane, Adelaide and regional markets. Hobart, Darwin and Canberra all managed to eke out slim growth.

The report notes that things could have been a lot worse. Back in March, forecasters like the Commonwealth Bank of Australia (ASX: CBA) were estimating property prices had the potential to plunge more than 10%.

But various government policies and income support payments like JobKeeper have evidently gone a long way to stem any potential bleeding in house prices. As have moratoriums on rental payments and evictions that the ASX banks like CommBank and various governments have implemented. Interest rates are also at record lows, which is also likely to be buttressing housing market stress.

What’s next for Aussie house prices?

Whilst the data from May and June isn’t exactly good news, it certainly could have been a lot worse. We are by no means out of the woods yet though.

Rental moratoriums will not last forever and neither will the generous support payments like JobKeeper. The report also quotes Domain Holdings Australia Ltd’s (ASX: DHG) Trent Wiltshire, who warns investors to brace for the end of these economic safety nets, which could come as soon as September:

“The key thing that potentially will push prices down is if people are forced to sell their properties. If we have people losing JobKeeper or the higher JobSeeker payment and then to need to start repaying their mortgage again, then that’s a really big hit to them, the economy and that will likely see a big rise in forced sales.”

So a lot is riding on the longevity of these safety nets. So if you want to keep an eye on where house price could head in FY21, watching developments in this space is a good place to start. In the meantime, I think all investors – be it in shares or property – should proceed with caution. As I said earlier, we are not out of the woods yet.

More reading

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• ASX 200 up 0.9%: Big four banks rising, NEXTDC rockets higher
• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Are Newcrest shares set to take off in FY21?

Motley Fool contributor Sebastian Bowen 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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