MENU

Market Wrap: Slater & Gordon Limited shares surge as ASX falls

Credit: Ken Teegardin

Local shares closed lower today, but there were a lot of heavy movers.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.7% to 5166 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.6% to 5218 points
  • AUD/USD at US 71.9 cents
  • Iron Ore at US$43.98 a tonne, according to the Metal Bulletin
  • Gold at US$1,057.30 an ounce
  • Brent oil at US$44.73 a barrel

The ASX 200 was dragged down today by the major miners and banks, most of which closed lower for the day. BHP Billiton Limited (ASX: BHP) was the big mover, shedding 3.6%, while National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA) lost 1% and 0.9%.

However, there were plenty of other big movements today, most notably Slater & Gordon Limited (ASX: SGH). After falling 74% last week, the shares regained 34.1% today after management reaffirmed earnings guidance for the 2016 financial year (FY16).

The Metcash Limited (ASX: MTS) share price also jumped 12.1% after management said it was up to stage two of its turnaround strategy, which could save ~$100 million in costs by FY19. Sales and earnings for the first half were perhaps also better than the market anticipated.

Dick Smith Holdings Ltd (ASX: DSH) and ALS Ltd (ASX: ALQ) weren’t so lucky. Dick Smith’s share price plunged as much as 69.7% before ending the day 57.6% lower after it booked a $60 million impairment on inventories and failed to confirm profit guidance.

ALS, on the other hand, plunged 22.7% after returning from a capital raising.

Here are Monday’s top stories:

  1. Why the Dick Smith Holdings Ltd share price just plunged 50%
  2. The Woolworths sale of Dick Smith now looks brilliant
  3. Why the Metcash Limited share price soared 16% today
  4. Why the BHP Billiton Limited share price could fall below $18
  5. Why Slater & Gordon Limited shares are soaring higher today
  6. Slater & Gordon Limited shares fly on NO CHANGE to financial guidance

What would YOU do if the market crashed tomorrow?

Discover our Foolish experts' advice on what YOU should do in the event of a crisis -- simply click here for your FREE copy of our newly updated report, "What to Do When the Sharemarket Crashes". Click here, it's FREE!.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.