The Aussie market has opened lower for a second day in a row with the ASX 200 at its session lows approaching midday. The benchmark index is down 65 points or 0.9% to 7,241 as investors react to further restrictions and lockdowns around the country caused by new cases of the COVID-19 virus.
All sectors are currently in negative territory with property trusts, utilities, materials, energy and industrials all falling by more than 1% each. Financials are also substantial drag while consumer staples and IT are closer to trading flat.
The introduction of COVID lockdowns is expected to have a negative impact on Kathmandu (KMD) with the adventure retailer releasing a trading update this morning. KMD has a total of 128 stores affected in NSW, WA & VIC (earlier lockdown in June). FY21 sales are now anticipated to be below the company’s original estimates of NZ$930 million with Earnings Before Interest, Taxes, Depreciation & Amortisation (EBITDA) also to be hit by NZ$13 million from the NSW & VIC lockdowns. KMD shares are down 3%.
Collins Foods (CKF) is 2.2% weaker after releasing its FY21 earnings for the year ended May 2. KFC Australia was the standout performer over the period with same store sales rising 12.9%. Revenue was also 13.8% higher to $900.4 million. Taco Bell saw revenue jump 57% but KFC Europe saw sales decline and margins contract due to COVID impacts.
Genworth Mortgage Insurance Australia (GMA) is sliding 14% after the Commonwealth Bank (CBA) intends to issue a Request for Proposal to extend its Lenders Mortgage Insurance (LMI) deal past its current exclusivity agreement which expires on 31 December 2022. Business generated through CBA represented ~57% of GMA’s gross written premiums in FY20.
Health insurer, Medibank (MPL) is lifting 0.8% after saying it will return approximately $105 million in net claim savings to customers with the total package to date of $300 million. Roughly 2 million policyholders are eligible for the returns.
The Aussie dollar is also weaker on Tuesday and is trading around 75.6 US cents.
Published by CommSec