ASX 200: ComBank, Westpac, CSL lead the ASX amid ongoing coronavirus fears

Despite ongoing concerns about the global economic impact of coronavirus (COVID-19), Australia’s biggest companies, including the Commonwealth Bank and CSL, racked up solid gains to push the Australian Securities Exchange to another near-record last week.
Big four banks - CBA, WBC, NAB and ANZ
Source: Vitalii Tairov, Canstar.

The ASX 200 rose four days last week to end at 7,130 points, just 2.5 points lower than the historic peak of 7132.7 last month. The broader All Ordinaries index closed the week at 7,227 points, an increase of 1.49%.

Internationally, the US market hit another record peak last week. It has gained another US$1 trillion (A$1.49 trillion) in value over the last two weeks. Tech companies Microsoft, Apple, Amazon, Alphabet (Google) and Facebook make up 18% of the market valuation and they have risen significantly. However, the ASX was tipped to open lower than its Friday finish this morning, after most international markets fell in their trading sessions at the end of last week.

S&P and All Ords Movements (07/02/2020 to 14/02/2020)
  Closing Points % Change
S&P/ASX 200 (XJO) 7,130 1.54%
All Ordinaries (XAO) 7,227 1.49%
Prepared by Canstar. Points taken as of Monday open to Friday close.

It was a week of revelations, as the half-yearly reporting season continued last week and companies including Telstra, JB Hi-Fi, Suncorp, Commonwealth Bank and Baby Bunting opened their books. More of Australia’s biggest companies are set to follow suit this week, including Coles, Cochlear, Wesfarmers, Coca-Cola and Lendlease.

This week will also see the Reserve Bank of Australia (RBA) publish minutes from its last board meeting, when it left the official cash rate on hold at 0.75%.  Australian jobs and wages data – which the RBA watches closely – will also be released.

Sector Movements (07/02/2020 to 14/02/2020)
  Closing Points % Change
Consumer Discretionary (XDJ) 2,885 2.28%
Consumer Staples (XSJ) 13,404 0.24%
Energy (XEJ) 10,890 -1.42%
Financials (XFJ) 6,487 3.61%
Health Care (XHJ) 47,557 2.45%
Industrials (XNJ) 7,205 0.74%
Information Technology (XIJ) 1,587 -0.07%
Materials (XMJ) 13,830 -0.80%
Telecommunication Service (XTJ) 1,352 0.10%
Utilities (XUJ) 8,346 3.18%
Prepared by Canstar. Points taken as of Monday open to Friday close.

ASX winners: What stocks led the gains last week?

The big banks made significant gains last week, especially the Commonwealth Bank (CBA), National Australia Bank (NAB) and Westpac (WBC).

Australia’s biggest company, the Commonwealth Bank, rocketed up 7.7% after its half-year earnings exceeded analyst expectations. Its share price is now $90.99, which is its highest since 2015.

NAB’s quarterly results were also up on what experts had tipped and investors bought in, sending the price 5.8% higher for the week, to finish at $27.35 a share.

Financial stocks gained an overall 3.61% for the week – the biggest sector rise – followed by a 3.18% increase in utilities companies.

The country’s second-biggest company, vaccine maker CSL, increased 3.5% to $331.19 per share, continuing its rise. It’s the highest price the shares have attracted to date.

ASX 200 – Top 5 Market Capitalisation Gains (07/02/2020 to 14/02/2020)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Commonwealth Bank of Australia (CBA) $11,524,259,191 $90.99 7.7%
2 CSL Ltd (CSL) $5,083,482,735 $331.19 3.5%
3 National Australia Bank (NAB) $4,391,564,960 $27.35 5.8%
4 Westpac Banking Corporation (WBC) $2,672,646,804 $25.70 3.0%
5 Goodman Group (GMG) $2,248,948,280 $16.44 8.1%
Prepared by Canstar. Prices taken as of week to week close.

Energy and Materials stocks were down

But some mining and minerals companies were affected by the ongoing jitters around the novel coronavirus outbreak. Overall, the energy sector was down 1.42% and the materials sector lost 0.8%.

International packaging company Amcor shed 7% of its value after releasing its half-year results. Despite announcing a 36% increase on its net sales, investors were not as impressed and the share price lost some of its recent gains to fall to $15.05.

Big miners Woodside Petroleum, Newcrest and Beach Energy also brought down the market.

ASX 200 – Top 5 Market Capitalisation Losses (07/02/2020 to 14/02/2020)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Amcor (AMC) -$1,171,227,797 $15.05 -7.0%
2 Woodside Petroleum (WPL) -$895,172,555 $32.83 -2.8%
3 Newcrest Mining (NCM) -$699,647,325 $27.99 -3.1%
4 Cochlear Ltd (COH) -$603,744,229 $233.00 -4.3%
5 Beach Energy Ltd (BPT) -$593,010,126 $2.11 -11.0%
Prepared by Canstar. Prices taken as of week to week close.

IDP Education, Breville and Challenger prices jump

The companies that shot up last week announced positive results for the last six months.

Global student placement and testing company IDP Education (IEL) revealed its earnings had increased nearly 50% in the last half-year and investors wanted in. Its price rose more than 35% to close at $23.50.

Toaster and shaver maker Breville (BRG) also impressed with its results – revenue was up 25% – and the share price shot up 28.1%.

Also recording double-digit growth in their share prices last week were investment manager Challenger Limited (CGF), which rose 13.7% to $10.10; waste management company Bingo Industries (BIN), up 13% to $3.18; and gold-miner Evolution Mining (EVN), up 12.6% to $4.23.

ASX 200 – Top 5 Share Price Gains (07/02/2020 to 14/02/2020)
Rank Company Closing Share Price % Change
1 Idp Education Ltd (IEL) $23.50 36.6%
2 Breville Group Ltd (BRG) $24.37 28.1%
3 Challenger Ltd (CGF) $10.10 13.7%
4 Bingo Industries Ltd (BIN) $3.18 13.0%
5 Evolution Mining Ltd (EVN) $4.23 12.6%
Prepared by Canstar. Prices taken as of week to week close.

Blackmores, Beach Energy, Orora slump

Vitamin and supplements company Blackmores (BKL) was sold down after it reduced its profit expectations for the year. It said it had real concerns about the impact of coronavirus on its supply chain and market, as well as other issues at a manufacturing facility. Its share price fell 17.7%

Building products producers Adelaide Brighton (ABC) and Boral fell 9.3% and 8.4%. Boral (BLD) said its net profit could be down as much as $100 million across its businesses.

ASX 200 – Top 5 Share Price Losses (07/02/2020 to 14/02/2020)
Rank Company Closing Share Price % Change
1 Blackmores Ltd (BKL) $73.60 -17.7%
2 Beach Energy Ltd (BPT) $2.11 -11.0%
3 Orora Ltd (ORA) $2.88 -9.6%
4 Adelaide Brighton (ABC) $3.20 -9.3%
5 Boral Ltd (BLD) $4.72 -8.4%
Prepared by Canstar. Prices taken as of week to week close.

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