Australia…One Hour In…ASX up 8 points

By Scott Phillips | More Articles by Scott Phillips

ASX200 up 8 points (0.1%) to 6596.

  • Afterpay (+2.5%);  have you seen the chart !!
  • Downer (+1.3%); has agreed to sell 70% of its laundries business to Australian private equity firm Adamantem Capital for $155m, removing one of its most capital-intensive units from its balance sheet.
  • Mesoblast (+9%); announced that the USFDA has granted Fast Track designation for remestemcel-L in the treatment of acute respiratory distress syndrome (ARDS) due to COVID-19 infection.
  • Regional Express (+3.2%); will soon enter Australia’s domestic aviation industry to rival Qantas and Virgin and create cheaper flights. Sydney/Melbourne flights start on March 1 with tickets from $79.
  • Westpac (-0.2%); announced it will sell Westpac General Insurance to Allianz (for $725m)  and enter into an exclusive 20 year agreement for the distribution of general insurance products to Westpac’s customers.
  • Worley (-3.8%); has cut headcount to 49,200 since June.   Cuts will continue.
  • Zip Co (-1.5%); said November transactions +44% vs October.   Added 464,000 customers in November.

….as we know, Tesla is being added to the S+P on Dec 21. Since this was announced Tesla is up approx. 42% (my maths, so be careful). I dug out this old headline from the Wall Street Journal from Dec 7 1999;

“Shares of Yahoo! Surge 24% As Stock Is Added to S&P 500”

It’s déjà vu all over again……

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.

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