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This year. We're going Beyond.

S&P/ASX 200 morning report – BHP, CKF & STO shares in focus

The S&P/ASX 200 (ASX: XJO) is set to rise when the market opens this morning. Here’s what ASX investors need to know.

ASX 200 overcomes weak start

Every sector on the ASX finished higher to start December, the ASX 200 adding 1.1% with consumer discretionary and financials the highlights. APRA released a scathing review of the internal culture at Westpac Banking Corp (ASX: WBC) internal culture, but the market was seemingly relieved that the assessment was now over.

FlexiGroup, now Humm Group Ltd (ASX: HUM), announced a joint venture with neo-bank Douugh Ltd (ASX: DOU) to launch a BNPL platform in the US; both shares rallied on the result.

Santos Ltd (ASX: STO) continues to emerge from the weakness of March, updating production guidance by around 5% and reporting a forecast cash flow breakeven oil price of US$25 per barrel. Management also announced the business would be Net Zero Carbon by 2040.

Despite the positive news, the oil and gas sector will remain under pressure from an impending breakdown in OPEC production cuts. With most oil companies rallying ahead of the oil price recovery, more diversified exposures offer better risk-adjusted returns at the current time in my view.

Rates on hold, BHP remains immune from China pressure

The RBA kept interest rates on hold in its monthly meeting and flagged that its QE program would remain under review, boosting markets in the afternoon.

KFC, Sizzler and Taco Bell franchisee Collins Foods Ltd (ASX: CKF) reported a more resilient result than expected, with sales rising 11% to $499 million in the six months to October 18. Management confirmed further investment in its click-and-collect technology as consumption habits continue to change.

Despite the strength, profit fell 19% to $16.5 million and shareholders incurred a $3.3 million write-down on the final closure of the Sizzler restaurant chain. It’s clear that Australians turn to comfort food in pandemics, the question is can growth continue into 2021? Management is pinning its hopes on an expansion of the Taco Bell franchise, but it seems a more difficult proposition.

BHP Group Ltd (ASX: BHP) has continued to defy the Chinese pressure, adding 1.3% on Tuesday, with iron ore seemingly immune from additional tariffs. According to experts, the tariffs placed on Australian goods may be causing anxiety among Chinese importers who are being forced to pay higher prices on lower quality goods from elsewhere, hopefully this contributes to a fast normalisation in recent policies.

US$900 billion stimulus is back, Zoom tanks

US markets moved back to record highs overnight, jumping in unison but once again driven by the technology sector, the Nasdaq adding 1.5% and the S&P 500 1.1%.

Every sector finished higher after the US government flagged an impending agreement on over US$900 billion in fiscal stimulus centred around an extension of their own Job Keeper package. This will clearly benefit the financial sector and will see the Australian market head higher on the open.

On a company-specific level, Zoom Communications (NASDAQ: ZM) tanked by 15% despite announcing a 367% increase in revenue from 2019 to US$777 million, well ahead of earnings estimates. This reflects the tiring of the WFH story and increasing likelihood of a swift return to normal.

In a sign that every company has its time in the sun, Blackberry Ltd (NYSE: BB), owner of the popular 90s phones, signed a company changing deal with Amazon (NASDAQ: AMZN) to provide its renowned intelligent vehicle data platform to Amazon Web Services, allowing car companies to securely utilise vehicle sensor data.

Back home, Australian GDP data will be released today at 10.30 am.

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

Note: the report is 100% free.

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Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

Disclosure: At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

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Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

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As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

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