The S&P/ASX 200 (ASX: XJO) was trading at down 1.23% at lunchtime today. Making today’s ASX sharemarket news was Kogan.com Ltd (ASX:KGN), Altium Ltd (ASX:ALU) and Suncorp Group Ltd (ASX:SUN).
Here’s what happened on the ASX 200 and Australian share market today before lunch.
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ASX 200 performers
1. Kogan.com Ltd
Kogan’s share price shot up 6.3% before lunchtime today, as the online retailer provided a business update for April 2020. Kogan revealed it added 139,000 active customers during the month to reach 1.95 million people.
That growth and the restrictions in physical shopping saw gross sales grow by over 100%. Gross profit jumped by over 150% and ‘adjusted EBITDA‘ rocketed higher more than 200%.
Kogan.com’s strong April performance has meant that financial year to date adjusted EBITDA to April 2020 is showing growth of over 40%. Read the full article from Rask Media’s Jaz Harrison here.
2. Altium Limited
This morning Altium gave investors a business and market update. In it, Altium announced COVID-19 troubles which sent the share price down 5% before lunch.
The company had previously said in early April that it was still doing quite well, with a growing cash balance on its balance sheet.
Today, the company said it’s anticipating some headwinds because of the longer restrictions and lockdowns affecting the US and Western Europe.
Altium is warning that the final quarter is likely to impact its performance. Continue reading here.
3. Suncorp Group Ltd
Suncorp share price was earlier down 5% on the back of a Coronavirus (COVID-19) update it reported yesterday.
The company said that it entered the COVID-19 period with a sound financial position with total excess (CET1) capital of $682 million at 31 March 2020. Suncorp said it had a conservative investment portfolio with more than 94% of investments in cash and fixed income securities.
That said, Suncorp had strengthened its reinsurance and natural hazard allowance for FY20.
In terms of the early effects of COVID-19, the company said that Suncorp Bank’s collective provision is $133 million, which is 0.23% of gross loans and advances.
Suncorp expects lower consumer motor claims because we aren’t driving as much. It’s also expecting increased landlord loss of rent claims and negative movements of the investment portfolio. However, Suncorp said that if landlords and tenants agree on a rent reduction, it won’t count as a defaulting tenant and does not trigger a claim. Want the full story? Read the article here.
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