Australia…1 Hour In…ASX Down 56 Points

By Scott Phillips | More Articles by Scott Phillips

We are now 54 points off the low of the day (yes, halved the early deficit) as US futures have rallied from being down to now being slightly up.

– Bapcor (-1.2%); says Autobarn sales up 8% YoY and up 45% in May/June. Expects demand to moderate in 2021 due to uncertainty.

– CSL (+1.6%); has agreed to pay US$450m to acquire from uniQure exclusive global license rights to AMT-061, for the treatment of hemophilia B.

– IDP Education (-3.3%); Education Aust has sold 5.1% stake in IDP Education. Says it won’t sell anymore within 6 months.

– Qantas (TH); launches a $1.9bn capital raising @ $3.65 vs last sale $4.19. $1.4bn in equity and a $500m SPP. Will ground 100 planes for up to 12 months. Its A380 fleet will be grounded for at least 3 years. Will continue to stand down 15,000 employees but says half of these may be back by year-end. Takes an impairment charge of $1.25bn to $1.4bn. Co says it must position itself for several years of lower revenue. The domestic schedule will return to 70% sometime this year. International flights may start in July next year. Alan Joyce to remain CEO until at least 2203. Lots of headlines, sorry if I missed any.

– Travel stocks; Corporate Travel -3.7% Flight Centre -7% Webjet -5.6%

– Woolworths (+0.5%); said its line of own-brand nappies, Little One’s, will now be made in Australia. The factory in Eastern Creek will make 185m nappies a year (or 10 every second). Anyone thinking of having a baby?!

Scott Phillips

About Scott Phillips

Scott has over 35 years experience in Australian equities, starting as a “chalkie” and trader on the Stock Exchange Trading Floor and spending the last 25 years advising and trading for International Institutions. He has been an Executive Director at JPMorgan and Nomura, a Governor of the Australian Stock Exchange and was recently awarded a Lifetime Achievment award by the Australian Stockbrokers Association. Now at Ascot Securities, Scott focuses on advising Family Offices, offshore Soveriegn Funds as well as a growing book of domestic Professional Investors.

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