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Unfortunately several Australian industries have copped tariffs from China this year, devastating companies that rely on export income from the world’s biggest population.

According to trade experts, Beijing is retaliating against Australia‘s calls for an investigation into the origins of COVID-19, attention on human rights cases in Xinjiang and condemnation on its suppression of free speech in Hong Kong.

“China seems determined to punish Australia and make it an example to other countries,” Lowy Institute senior fellow Richard McGregor told Bloomberg last month.

“They want to show there’s a cost for political disagreements.”

The fortunes of Treasury Wine Estates Ltd (ASX: TWE) is the most prominent example. The Chinese Ministry of Commerce last month declared that Australian wines were being dumped into the country, to justify slapping a 169.3% deposit rate.

Treasury’s share price, which had already sunk when China started its anti-dumping enquiry, plummeted.

Australian barley farmers are similarly feeling the pinch as a major export market instantly disappeared.

“The tariffs and trade restrictions introduced over the past year have pulled out the rug from beneath many Australian businesses, dissuading businesses from pursuing trade with China,” said IBISWorld senior industry analyst Liam Harrison.

China knows it has leverage with these trade blocks, according to Harrison. The country is Australia’s largest export partner, with 35.3% of goods and services heading there.

“Australian industries have invested heavily in expanding their trade with China since the China-Australia Free Trade Agreement was signed in December 2015.”

Now IBISWorld has identified 5 other sectors China could target if tensions escalate.

Any ASX shares that are involved in these commodities would need to be evaluated with these risks in mind.

Dairy

Both the milk and cream processing sector and the milk powder industry are “highly vulnerable” to hefty Chinese tariffs.

ASX-listed companies like A2 Milk Company Ltd (ASX: A2M), Bega Cheese Ltd (ASX: BGA) and Keytone Dairy Corporation Ltd (ASX: KTD) could see their stock prices sink if that happened.

Harrison said slugging dairy would mean trade hostilities have stepped up to a very severe level.

“Australian dairy products are highly popular, and there are few substitute markets for baby formula that Chinese parents are willing to trust,” he said.

“Action against this market would likely cause significant backlash from Chinese consumers, and could result in weakened support for continuing trade restrictions against Australia.”

Australian baby powder exports skyrocketed during the COVID-19 pandemic, to reach 18,726 tonnes year-to-date to the end of September.

Honey

Australian honey is valued in Asian countries, especially the top-notch Manuka type.

China receives more than a quarter of Australia’s exports, but the industry is vulnerable to a trade ban as other honey-producing nations are readily available.

Manuka honey comes from a type of tea tree that’s only seen in New Zealand and south-east Australia, according to Harrison.

“The beekeeping industry in New Zealand would stand to benefit from reduced competition if China imposes tariffs on Australian honey,” he said.

“For Chinese consumers, plentiful supply of cheaper honey would likely replace the lower availability of manuka products.”

Fruit

According to IBISWorld, Australia’s “citrus, nut and other fruit” industry sends more than 45% of its exports into China. More than 30% of total exports for apples, pears and stone fruits also head to the giant Asian nation.

“Fruit farmers across Australia have already suffered major setbacks, including sweltering heats early in the year, severe bushfires and now a shortage of fruit-pickers due to COVID-19 travel restrictions,” said Harrison.

“Losing China as an export market could be devastating to an already weakened industry.”

Companies like Costa Group Holdings Ltd (ASX: CGC) are involved in this area.

Pharmaceuticals

Australian medicines and supplements are popular in China, but the moat is very narrow.

“Our largest advantage in providing to this market is our relative geographic proximity,” said Harrison.

“Many industry products have a range of alternative suppliers, such as the US, Canada and various markets across Europe, leaving the Australian industry particularly vulnerable to trade restrictions.”

The local pharmaceutical industry derives more than 50% of its revenue from export markets.

Brands like Blackmores Limited (ASX: BKL) and Mayne Pharma Group Ltd (ASX: MYX) are exposed to a Chinese tariff escalation on pharmaceuticals.

Mining

If you own iron ore mining shares, you would never know China was picking on Australia at the moment. Prices for the metal have soared, and so have the stock prices.

Both iron ore and bauxite are heavily reliant on Chinese exports, but fortunately Australia has a thick moat with few competitors.

“Australian iron ore is very high quality, and there are currently few markets which can produce the quality, and particularly the quantity, of resources needed to fuel China’s steel manufacturing industry,” Harrison said.

“A recent downgrade in production by Brazilian producer Vale has also weakened China’s potential for alternative markets for iron ore.”

More reading

• Zip and Creso Pharma were among the most traded shares on the ASX last week
• 3 reasons the A2 Milk (ASX:A2M) share price could be a buy
• Why the Keytone Dairy (ASX:KTD) share price is up 8% today
• These are the 10 most shorted shares on the ASX
• Why Cashrewards, Doctor Care Anywhere, Kogan, & Treasury Wine are pushing higher

Motley Fool contributor Tony Yoo owns shares of A2 Milk. The Motley Fool Australia owns shares of and has recommended A2 Milk, Blackmores Limited, COSTA GRP FPO, and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As this crazy year draws to a close, it is worth reflecting on some of the best performing shares on the ASX.

There have been some surprising success stories to come out of 2020: little-known tech companies like Nitro Software Ltd (ASX: NTO) and Megaport Ltd (ASX: MP1) have lit up the market. But few companies have delivered the same level of shareholder returns as that of corporate bookmaker Pointsbet Holdings Ltd (ASX: PBH).

Prior to the outbreak of COVID-19, 2020 had been shaping up as a banner year for Pointsbet. Its strategy to target the expanding American gambling market had been delivering some tangible success. Pointsbet had been an early mover in many of the US states that were beginning to relax their restrictions surrounding online sports betting. According to its first half FY20 results, Pointsbet had gained access to a sports betting market worth $5.2 billion in the US alone.

The success of the company’s strategy was reflected in the Pointsbet share price. After listing for $2 in June of last year, Pointsbet shares surged to a high of $6.65 by mid-January, and looked set to go absolutely ballistic in 2020.

But then coronavirus happened.

The impact on Pointsbet’s business was particularly devastating. Sports leagues across the world came to a grinding halt. With almost nothing for its clients to bet on, it looked like the company’s revenues were drying up. The Pointsbet share price was savaged in the March market crash, falling as low as $1.10.

Despite the risks posed to Pointsbet’s business, the company continued to follow through on its expansion plans in the United States. Over the last few months, the company has launched operations in the US states of Illinois and Colorado, and signed a new 5 year exclusive partnership with US media giant NBC Universal.

Pointsbet share price game changer

The NBC Universal deal was particularly well received by the market, with the Pointsbet share price skyrocketing close to 90% on the day of the announcement. And no wonder, NBC Sports has the largest audience of any sports media organisation in the US and its broadcast network reaches every TV household in the country.

Pointsbet will now have its brand integrated across NBC Sport’s portfolio of sports-focused cable networks, streaming platforms, and other sports digital media. This includes providing betting odds in free-to-play games and fantasy leagues.

The deal with NBC also gives Pointsbet access to Telemundo, a leading Hispanic media company in the US. Pointsbet has tailored its product to specifically address the Hispanic population, and is one of only two sports betting applications in America to offer full Spanish language functionality.

Cashed up

Pointsbet took advantage of the positive investor sentiment generated through the NBC deal and successfully raised over $350 million from both institutional and retail investors. According to its first quarter FY21 investor presentation, Pointsbet now has over $430 million in total corporate cash and cash equivalents on its balance sheet.

The future for Pointsbet is still hard to determine. Despite the prospect of a major coronavirus vaccine rollout buoying equity markets globally, the worsening situation in the US may continue to stifle economic growth there for months to come.

However, the company has at least proven itself to be a resilient operator throughout the COVID-19 crisis. And its ability to execute on its expansion plans despite the market headwinds has lifted the Pointsbet share price to new highs in 2020.

More reading

• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Why has the PointsBet (ASX:PBH) share price gone nowhere since August?
• The 13 ASX shares that could have doubled your money in 2020
• Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower
• PointsBet (ASX:PBH) share price on watch after US update

Rhys Brock owns shares of MEGAPORT FPO, Nitro Software Limited, and Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended MEGAPORT FPO, Nitro Software Limited, and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Link Administration Holdings Ltd (ASX: LNK) share price could be on the move today after the release of a business update.

What did Link announce?

Ahead of its business update event, the administration services company released a presentation which included a summary of how it is performing so far in FY 2021.

According to the release, Link has started FY 2021 positively, thanks largely to its resilient revenues. Management notes that 84% of its revenue is classed as recurring.

In light of this, the company is on track to deliver revenue of $594 million for the first half. This represents a 4.8% decline on the prior corresponding period’s revenue of $624 million.

Link also revealed that its top five Retirement & Superannuation Solutions (RSS) clients have either renewed or an on track to renew their contracts. It has also experienced continued strong member growth. And with macroeconomic conditions improving, management appears optimistic that this will continue.

It also revealed that the key PEXA business is performing very positively. Since June, monthly transactions have continued to grow as PEXA’s digital platform and networks drive further penetration across Australia.

Another positive is that its Global Transformation Program is on track and further upside from the program is now expected. It has made a 50% increase to its FY 2022 target, lifting it from $50 million to $75 million.

In respect to earnings, management advised that it is expecting its operating net profit after tax before amortisation (NPATA) to come in at $57 million for the first half. This will be down 29.6% from the $81 million it achieved in the prior corresponding period.

FY 2022 momentum.

Looking ahead, the company believes it is well-placed for FY 2022 and beyond.

It advised that it has good momentum going into FY 2022 and notes that its RSS business has won a major contract with Hostplus. Furthermore, its Pepper European Servicing capabilities are expected to strengthen its Banking and Credit Management.

More reading

• ASX 200 up on Tuesday
• ASX 200 up 0.1%: Bank of Queensland update, Link jumps, Woodside CEO to retire
• Why Adairs, Link, Nuix, & Tyro shares are charging higher
• Link (ASX:LNK) share price on watch after receiving second takeover approach
• 5 things to watch on the ASX 200 on Tuesday

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 Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Earlier this fall, credit-rating agency S&P Global boosted its rating on Tesla Inc‘s (NASDAQ: TSLA) debt, citing the electric-car maker’s growing cash reserve relative to its debt. But the BB- rating still left the company’s bonds in the “junk” category. This, however, is likely to change soon.

Despite this recent rating upgrade on Tesla’s debt, it’s already out of date. Since then, Tesla reported better-than-expected third-quarter results with a huge jump in free cash flow. In addition, the company announced a $5 billion equity sale on Tuesday morning — a move that gives the company significant financial strength. 

On top of this capital raise bringing more surety to the eventual repayment of Tesla’s bonds, it reinforces the company’s ability to maintain its lead in the fast-growing electric-vehicle market.

A well-timed equity raise

This stock sale couldn’t have been better timed. Shares have soared over the past year, rising more than 840%. Further, the growth stock hit an all-time high on Monday, giving Tesla a market capitalisation greater than $600 billion. This means a $5 billion capital raise would only dilute Tesla shareholders’ ownership by less than 1% yet will increase the company’s total cash position by 34%, based on its reported $14.5 billion cash position at the end of Q3. 

Not only will Tesla’s cash beef up its balance sheet, but it also positions the company to more confidently invest in growth opportunities. The automaker said earlier this year that it planned to double its annual capital expenditures over the next two years as Tesla continues expanding with new factories and begins vertically integrating more battery design and manufacturing. 

Tesla has taken advantage of its soaring stock price several times this year. The company has now raised capital three times in 2020.

An enviable position

With trailing-12-month revenue of about $28 billion and analysts estimating that these sales will grow 46% next year, Tesla has already carved out a strong leadership position in the fast-growing electric-vehicle market. A 34% increase to its cash position, however, will make it more difficult than ever for competition to catch up.

Tesla didn’t necessarily need more cash. In Q3 alone, quarterly free cash flow was $1.4 billion — up from $371 million in the year-ago quarter. In addition, the company said in the quarterly update that it “should have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses.”

But given Tesla’s skyrocketing stock price, it seems prudent to significantly increase cash reserves, as it results in minimal dilution with the stock at this level.

Not only will Tesla now be better prepared for any unexpected challenges after it closes its $5 billion equity raise, but management can act more aggressively and with more agility when it comes to investing in the many growth opportunities in front of the company.

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

More reading

• Why the Talga (ASX:TLG) share price surged by 5% today
• Cimic (ASX:CIM) share price inches up on $112 million contract wins
• Here’s how world’s 10 richest made $1.5 trillion from COVID-19
• Elon Musk wants to steer Tesla towards higher profits
• 10 most searched shares in Australia

Daniel Sparks 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 Tesla. 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.

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

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The Infratil Ltd (ASX: IFT) share price will be on watch today when it returns from its trading halt.

Yesterday afternoon the New Zealand-based infrastructure investment company’s shares rocketed 21% higher before being hurriedly placed into a trading halt.

This followed speculation that Infratil had received a takeover approach from AustralianSuper.

What did Infratil say?

This morning the Infratil board confirmed that it received an initial non-binding, incomplete, indicative and confidential offer from AustralianSuper to acquire the company via a scheme of arrangement.

It first received an offer on 18 October of NZ$6.40 per share, before it was revised higher on Tuesday to NZ$7.43 per share.

Although this represented a 22.2% premium to its last close price, the company rejected the approach. This was on the belief that it materially undervalues Infratil’s high quality and unique portfolio of assets on a control basis.

The board also notes that there are material conditions related to Foreign Investment Review Board and Overseas Investment Office approvals in Australia and New Zealand. It feels these conditions and other aspects of the proposal also make it unattractive to shareholders.

The company’s Chairman, Mark Tume, commented: “The Board regularly assesses portfolio construction and return expectations. We have had a long and successful track record as active managers of the Infratil platform, and recent examples include the ongoing success of CDC Data Centres, the proposed acquisition of Qscan and the strategic review of Tilt Renewables. As at 8 December 2020, Infratil had delivered total shareholder returns of 18% per annum since listing in 1994 and has a stated annual targeted return for our shareholders of 11%-15% over the long term.”

This sentiment was echoed by its Chief Executive, Marko Bogoievski.

He added: “Both proposals were unsolicited and materially undervalue our significant renewable energy and digital infrastructure platforms. We expect some of the additional value to be demonstrated in the near term with the recently announced strategic review of Tilt Renewables, which will continue, and ongoing appreciation of the value of CDC Data Centres.”

More reading

• Why the Infratil (ASX:IFT) share price rocketed 21% higher today
• ASX stock of the day: Tilt (ASX:TLT) share price rockets 17% to new all-time high

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the Australian share market continued its positive run and climbed higher again. This led to the market reaching a nine-month high.

While this is a big positive, some ASX shares are performing even better.

For example, three ASX shares which have hit 52-week highs or better are listed below:

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price rocketed to a 52-week high of 26 cents on Tuesday. When the cannabis company’s shares hit that level, it meant they were up an incredible 381% since this time last week. Investors have been buying Creso Pharma’s shares since the UN announced a landmark decision to reclassify cannabis as a less dangerous drug and the US House of Representatives voted to decriminalise cannabis. Creso believes this has the potential to create significant growth opportunities in the industry. It also advised that its Canadian subsidiary, Mernova, can scale up operations to meet potential demand from the US market.

SEEK Limited (ASX: SEK)

The SEEK share price rose to a record high of $26.79 yesterday. The job listings company’s shares have been very positive performers over the last four to five weeks for a couple of reasons. One was news that a number of potentially effective COVID-19 vaccines will be released in the near future. This sparked hopes of a quicker than expected economic recovery, which would only be good news for the job market. Also giving its shares a boost was an update by SEEK at its annual general meeting. SEEK lifted its guidance after a stronger than expected rebound in its performance across a number of markets.

Xero Limited (ASX: XRO)

The Xero share price hit a record high of $141.50 on Tuesday. The catalyst for this was a broker note out of Goldman Sachs earlier this week. Its analysts slapped a buy rating and $157.00 price target on the cloud-based business and accounting software provider’s shares. Goldman believes Xero’s long-term earnings opportunity is material. It estimates that it has a NZ$14 billion total addressable market across its key regions. It also suspects that its total addressable market could be worth a further NZ$62 billion if it can monetise its app ecosystem. This provides it with a “multi-decade runway for strong revenue growth.”

More reading

• Zip and Creso Pharma were among the most traded shares on the ASX last week
• Top ASX shares to buy in December 2020
• Top ASX shares making record all-time highs
• 2 of the best ASX tech shares you can buy today
• Why the Creso (ASX:CPH) share price is rocketing 30% today

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some compelling reasons why Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), also called Soul Patts, could be considered a great ASX dividend share.

A quick overview of Soul Patts

Soul Patts is an investment conglomerate that has been listed since 1903.

The company has many long-serving employees. More than 40 employees have worked for the company for over 50 years. Five generations of the Pattinson family have served the company, as have three generations of the Dixson, Spence, Rowe and Letters families. Soul Patts itself takes a long-term investment approach into businesses.

The management team like to take a contrarian approach when taking positions into some sectors. For example, it recently invested into agriculture during the course of one of Australia’s worst droughts.

It is currently invested across numerous industries such as telecommunications, building products, resources, pharmacies, listed investment companies (LICs) and financial services.

Here are some of the reasons why Soul Patts could be considered a great ASX dividend share:

Diversification

Soul Patts’ investments essentially provide shareholders with a diversified portfolio, somewhat like an exchange-traded fund (ETF).

Being invested across many businesses is usually seen as a safer idea than one particular company.

Some of the ASX shares that Soul Patts currently owns in its portfolio are: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), New Hope Corporation Limited (ASX: NHC), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI), Palla Pharma Ltd (ASX: PAL), Clover Corporation Limited (ASX: CLV) and Pengana Capital Group Ltd (ASX: PCG).

It also owns unlisted businesses. Soul Patts has agriculture investments, as I’ve already mentioned. It also has investments in private businesses including cleaning, resources, swimming schools, financial services and a business called Ampcontrol.

Dividend funding

Soul Patts funds its dividend to shareholders from the cash flow from its investments in the form of dividends, distributions and interest. The company takes its total investment income, pays for the operating expenses, tax and so on – what’s left is called its regular operating cashflow.

TPG, Brickworks and New Hope normally make up a large proportion of the funding because those three stakes make up a significant part of Soul Patts’ asset value.

In FY20 Soul Patts paid out 56.93% of its regular operating cash flow as a dividend. This doesn’t include $28.53 million of a TPG dividend which was escrowed for FY21 because the old TPG would have paid that dividend in November.

Dividend growth streak record

Soul Patts has the longest consecutive dividend growth streak on the ASX. It has grown its dividend every year since 2000. Ramsay Health Care Limited (ASX: RHC) also had a streak going back that far, but the COVID-19 pandemic impacts ended that run.

There are businesses overseas with much longer dividend runs, but on the ASX it’s the longest streak. And it comes with franking credits attached as well which overseas shares do not. Franking credits boosts the prospective yield for Aussie investors.

What’s the Soul Patts dividend yield now?

At the current pre-open Soul Patts share price of around $29, it has a trailing grossed-up dividend yield of 3%. The prospective yield has been declining as the share price has risen over the year. However, the grossed-up yield is still materially higher than the official Reserve Bank of Australia (RBA) interest rate.

More reading

• How to get a passive income of $50,000 per year from ASX dividend shares
• Got money to invest? Here are 3 ASX dividend shares to buy
• Got cash to invest? Here’s 3 ASX shares to buy
• 3 reasons why Brickworks (ASX:BKW) shares are a buy for dividends
• 3 ASX dividend shares to buy in December

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At present, Westpac Banking Corp (ASX: WBC) is offering investors interest rates of just 0.35% per annum on five-year term deposits. This is broadly in line with what the rest of the banks are offering.

This means that even if you put $100,000 into them, you would earn interest of just $350 each year.

The good news is that there are a great number of dividend shares on the Australian share market that offer significantly better yields. Two such examples are listed below:

Accent Group Ltd (ASX: AX1)

Accent is the leading footwear retailer behind a number of popular store brands. This includes HYPE DC, Platypus, The Athlete’s Foot, and Sneaker Lab. It has also recently launched two new store brands despite the pandemic – Australian Stylerunner and Pivot. The good news is that these new stores have been materially outperforming expectations since opening. This bodes well for its bold expansion plans over the coming years.

Analysts at Morgan Stanley believe the company is well-placed to reward shareholders with dividends in FY 2021. The broker is forecasting a fully franked dividend of 9.4 cents per share. Based on the latest Accent share price, this represents a 4.3% dividend yield.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural property-focused real estate investment trust (REIT) which owns a diversified portfolio of high quality assets. These assets are leased to experienced agricultural operators such as wine giant Treasury Wine Estates Ltd (ASX: TWE) on very long leases.

At the end of FY 2020, the company owned 61 properties with a combined value of $1 billion and a weighted average lease expiry (WALE) of 10.9 years. From this, it was generating adjusted funds from operations (AFFO) of 11.7 cents per share.

Thanks to fixed rental increases, the company intends to grow its distribution by its 4% per annum target rate in FY 2021. This will mean an 11.28 cents per share distribution for shareholders. Based on the current Rural Funds share price, this works out to be a 4.6% yield.

More reading

• 2 highly rated ASX dividend shares to buy
• Here’s why income investors may love Rural Funds (ASX:RFF)
• 2 ASX dividend shares with generous 4%+ yields
• 2 high yield ASX dividend shares to buy
• 2 defensive ASX dividend shares for income

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 and Treasury Wine Estates Limited. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) fought hard to carve out a small gain. The benchmark index rose 0.2% to a nine-month high of 6,687.7 points.

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

ASX 200 expected to rise.

The Australian share market looks set to push higher again on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 29 points or 0.4% higher this morning. This follows a positive night of trade on Wall Street, which in late trade sees the Dow Jones up 0.5%, the S&P 500 up 0.35%, and the Nasdaq up 0.5%.

UK COVID-19 vaccine rollout begins.

The UK became the first country to start the official rollout of a COVID-19 vaccine on Tuesday. According to the BBC, a 90-year-old grandmother became the first person in the world to be given the Pfizer vaccine. That was the first of 800,000 doses of the vaccine that will be distributed in the near term, with up to four million more expected by the end of the month.

Oil prices mixed.

Energy producers including Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.25% to US$45.64 a barrel and the Brent crude oil price is flat at US$48.88 a barrel. Rising COVID cases and lockdowns offset the vaccine news.

Gold price rises again.

It could be a good day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) today after the gold price pushed higher again. According to CNBC, the spot gold price is up 0.6% to US$1,877.3 an ounce. The precious metal hit a two-week high after traders bet on US fiscal support.

Westpac rated as a buy.

The Westpac Banking Corp (ASX: WBC) share price is in the buy zone according to analysts at Goldman Sachs. This morning the broker retained its buy rating and $20.34 price target on its shares. Goldman believes mortgage credit growth will rise towards 5% in FY 2021 and the major banks are well-placed to get towards system growth. It is also forecasting a 97 cents per share dividend for Westpac in FY 2021.

More reading

• ASX 200 up on Tuesday
• Vocus (ASX:VOC) founder: ASX is in ‘bubble territory’
• Leading brokers name 3 ASX shares to sell today
• Woodside (ASX:WPL) share price flat on CEO retirement
• ASX 200 up 0.1%: Bank of Queensland update, Link jumps, Woodside CEO to retire

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.20% to 6,688 points today.

Here are some of the highlights from the ASX:

Link Administration Holdings Ltd (ASX: LNK)

The Link share price went up 14% today after the company revealed there was another takeover offer.

This one is a conditional, non-binding indicative proposal from SS&C Technology Holdings to buy the whole business. SS&C is a NASDAQ-listed global provider of investment and financial software services and healthcare software. It’s headquartered in Connecticut and has 150 offices in 35 countries.

The cash offer price from SS&C is $5.65 per share.

Adairs Ltd (ASX: ADH)

The Adairs share price went up almost 3% today after the home furnishings business released a trading update and earnings guidance.

Adairs said that after 23 weeks in the first half of FY21, total Adairs sales were up 23.4%.

Adairs stores sales were up 5.2%. When only including open stores like for like sales were up 17.3% (which excludes Melbourne stores when they were closed). Online sales were 99.7% higher and Mocka sells went up by 45.1%. Online sales represented 39% of total sales.

Adairs said that its gross profit margin was well above FY20 after a consistent focus on that side of things.

The company gave some guidance for the first half result. It’s expecting group sales to be between $235 million to $245 million, up from $179 million.

It’s also expecting total underlying earnings before interest and tax (EBIT) to be between $62 million to $66 million, up from $23.2 million.

G8 Education Ltd (ASX: GEM)

The G8 Education share price fell by 6.6% today after the childcare operator gave a trading update.

The company said that occupancy and attendance is recovering well with current like for like occupancy at 75.5%.

Management said that costs are being well managed, supporting selective investments in resources, as well as repairs and maintenance, in the fourth quarter of 2020. Revenue and costs are underpinned by government support.

Calendar year to date (to 30 November 2020) underlying earnings before interest and tax (EBIT) was $98 million, including current year wage costs relating to the employee payment remediation program.

Total one off costs of the employee remediation program is currently estimated to be $50 million to $80 million, pre-tax.

It’s still working on an improvement program covering around 100 centres. The divestment plan for previously impaired centres is progressing to plan and the sale of the Singapore business has completed.

G8 said it has a strong balance sheet and it’s now broadly cash neutral.

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price fell 1% after providing a business update for its performance and COVID-19 relief.

The CEO and managing director of BOQ George Frazis said: “BOQ continues to execute on its transformation program with the family and friends phase 1 launch of the Virgin Money digital bank going live this week. We reconfirm the FY21 outlook for BOQ to deliver broadly neutral jaws.”

As at 30 November 2020, BOQ has 2,500 housing loans remaining in deferral with balances of $889 million. This balance represents 3% of BOQ’s housing loan portfolio. BOQ has 3,300 SME loans remaining on deferral with balances of $390 million. This balance also represents 3% of BOQ’s total SME lending.

Mr Frazis said: “It is really pleasing to see the vast majority of our customers who accessed the banking relief package resuming repayments. We will continue to work with the remaining 3% of customers still accessing our banking relief packages to support them in their recovery.”

More reading

• Vocus (ASX:VOC) founder: ASX is in ‘bubble territory’
• Woodside (ASX:WPL) share price flat on CEO retirement
• ASX 200 up 0.1%: Bank of Queensland update, Link jumps, Woodside CEO to retire
• Why Adairs, Link, Nuix, & Tyro shares are charging higher
• Why G8 Education, Metcash, Woodside, & Zip shares are dropping lower

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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