Aussie shares are rebounding to start December after finishing November with three successive declines. The ASX 200 is trading 78 points or 1.2% higher at 6,595 at lunch. The index is trading near session highs after a relatively slow start to the day. The local market is firming despite US markets retreating in overnight trade.
Improvements have been rather broad with nearly every sector advancing in the first few hours of trade. Only energy is in retreat as global oil prices dipped following an OPEC+ meeting finishing with no definitive conclusion for production cuts. Leading gains are IT, healthcare materials and the consumer sectors.
Domino’s Pizza (DMP) is one of the biggest percentage winners as it jumps 10.9%. The pizza franchise held an investor day yesterday and has since received several broker upgrades and price target increases. Sandfire Resources (SFR) is also rising 10% as it holds an investor presentation. The miner is developing a US$259 million copper mine in Botswana. The project has a life-of-mine estimated revenue of US$2.45 billion with a probable reserve of 39.9Mt of copper and silver ore.
Collins Foods (CKF) is 5% higher after the operator of KFC, Sizzler and Taco Bell in Australia, Asia and Europe, released solid growth for the first half of FY21. Group revenue grew 11% to $499.6 million with KFC Australia revenue of $415.5 million (up 15.6%). Same store sales (SSS) for KFC Australia stores also rose 12.4% from 4.9% growth a year ago. Its European KFC & Sizzler operations were more negatively impacted by COVID-19.
The biggest decliner is McPhersons (MCP), slumping 34% after the health & wellbeing supplier withdrew its FY21 outlook following softer than expected sales at the significant singles day sales (November 11) in China, leaving MCP with higher than expected forecast inventory of its Dr LeWinn’s product. It has also reduced its 1H21 underlying profit before tax to $6.5-$7.5 million, down from $10.2-$11.1 million.
The Aussie dollar is recovering from its lows earlier this morning, now buying 73.57 US cents. It was boosted by a lift in weekly consumer confidence. Later today, the RBA is expected to keep the official cash rate on hold at 0.1% at its 2.30pm AEDT meeting.
Published by CommSec