The S&P/ASX 200 (ASX: XJO) overcame a negative lead to finished broadly flat on Monday.
COVID winners back as lockdowns extended
COVID-19 outbreaks in almost every state barring Victoria have sent the market back into the realm of 2020’s top trades.
On the one hand, travel and tourism-facing stocks suffered, with Qantas Airways Limited (ASX: QAN) falling 4.0% and Flight Centre Travel Group Ltd (ASX: FLT) down 3.4%.
On the other hand, COVID-19 beneficiaries including online furniture retailer Temple & Webster Group Ltd (ASX: TPW) and Kogan.com Ltd (ASX: KGN) jumped 10.2% and 6.6%, respectively. This is clearly sentiment driven with both having fallen heavily as comparable sales figures came into focus.
On the more sustainable side, Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) continue to gain, up 1.3% and 2.9% respectively, with staples like groceries likely to sustain beyond the short-term.
Coal crunch
ASX coal miners were hit hard by a Chinese spokesperson suggesting that the supply crunch of the commodity in China was set to ease.
The announcement highlighted the growth of renewable energy in the country along with the increase in domestic production as key reasons behind the expected price reduction.
Oil rises, another ASX gold miner disappoints
The oil price hit a three-year high overnight as a lack of investment in supply combines with an expected recovery in demand.
Despite the jump, Santos Ltd (ASX: STO) finished just 0.7% higher and remains below 2020’s high.
Costa Group Holdings Ltd (ASX: CGC) shares fell 1.6% after settling the institutional portion of its placement, whilst junior gold miner Gold Road Resources Ltd (ASX: GOR) fell 7.4%.
The miner downgraded production guidance due to disruptions at its processing plant, sending its costs higher and once again proving the poor hedge that miners can be.
Metcash delivers
Metcash Limited (ASX: MTS) was the standout of the day, delivering a 40% increase in the dividend after a record year.
The company reported a 9.9% increase in revenue to $14.3 billion and a 27% increase in profit to $252 million as the pandemic pulls it out of a decade long malaise.
Alcohol and hardware sales were the key contributor, with earnings up 22% and 62% in these divisions, and supported the purchase of another 15% of Total Tools for $59.4 million.
The final dividend was 9 cents per share, taking the full-year payout to 17.5 cents but sending the share price just 0.8% higher.
ASX 200 today
The ASX 200 is set to open lower on Tuesday, following a mixed lead from US markets overnight. Technology was a standout with the Nasdaq rising 1%. To find out more, read Rask Media’s US stock market report.