The S&P/ASX 200 (ASX: XJO) staged a remarkable recovery, managing a flat day despite falling as much as 0.9% on Tuesday morning.
Energy, materials and utilities were amongst the weakest performers, with a raft of dividend payments pulling the real estate sector lower as 30 June approaches.
Dividends hit real estate
Unibail-Rodamco-Westfield (ASX: URW) fell 5.2% and Growthpoint Properties Australia Ltd (ASX: GOZ) 1.9% as dividend payments reduce their value overnight.
Healthcare and IT topped the sectors, up 0.5% and 0.6% respectively whilst Metcash’s (ASX: MTS) renaissance continued, jumping another 5.7% as investors digest full-year results.
Collins Food falls on earnings
Collins Food Ltd (ASX: CKF), owner of the KFC and Taco Bell franchises, fell 5.7% despite reporting record revenue of $1.06 billion.
This was the first result above $1 billion and represented a 12% increase on 2020’s levels.
Profit was 17% higher at $37 million, driven by record same-store sales growth at KFC.
That said, management warned that momentum had slowed since May, with Taco Bell sales down 14% in the first seven weeks and KFC down 1.5%.
Santos moving in
Elsewhere, Santos Ltd (ASX: STO) appears to be pushing ahead with a US$2 billion project in WA despite mounting concerns of its climate impact.
WAM Global merging with Templeton
2021 will mark the end of the Templeton Global Growth (ASX: TGG) LIC on the ASX, with the fund set to merge with Geoff Wilson’s WAM Global Ltd (ASX: WGB).
The strategy had been somewhat of a lone wolf in the Australian market, with little support and a persistent discount.
The deal will be funded by WGB issuing new shares, taking the trust to over $940 million in assets, whilst also offering to buy back shares at the after-tax NTA; a solid result for all involved which sent the TGG share price 4% higher.
Genworth share price smashed
Genworth Mortgage Insurance Australia Ltd (ASX: GMA) fell 15.7% after it was advised by the Commonwealth Bank that it would be forced to retender for its exclusive mortgage insurance contract that expires in 2022.
Whilst the contract may well be won again, it puts a significant amount of revenue at risk.
Medibank returning money to members
Medibank Private Ltd (ASX: MPL) shares added 0.3% after announcing it would return $105 million to customers in the form of premium ‘relief’.
The decision comes after costs were significantly lower than expected during the pandemic.
ASX 200 today
The ASX 200 is poised to open higher on Wednesday, following a positive lead from US markets overnight. To learn more, read today’s US stock market report.
