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ASX 200 lunch time report: Goodman Group & Wesfarmers higher, Costa sinks

At lunch on Friday the S&P/ASX 200 index has fought back from a weak start and pushed 0.4% higher to 6,528.2 points.

Here’s what has been happening on the index today:

Costa Group disappoints.

The Costa Group Holdings Ltd (ASX: CGC) share price has crashed 15.5% lower after the horticulture company’s half year results fell short of the market’s expectations. Although Costa grew its revenue by 11.8%, statutory net profit after tax fell 15% to $41.1 million. Also weighing on sentiment was management warning that challenging trading conditions means that there is a risk that it could fall short of its guidance again.

Bravura shares on a rollercoaster ride.

The Bravura Solutions Ltd (ASX: BVS) share price has been on a rollercoaster ride today following the release of its full year results. In FY 2019 Bravura posted a 16% increase in revenue to $257.7 million, a 27% jump in EBITDA to $48.1 million, and a 21% lift in net profit after tax to $32.8 million. This initially led to its shares rocketing 11% higher, but since then they have plunged lower and are down 8% at lunch.

Wesfarmers rises after ditching Lynas deal.

The Wesfarmers Ltd (ASX: WES) share price has pushed almost 2% higher after announcing that it would not be going ahead with its $1.5 billion acquisition of rare earths producer Lynas Corporation Ltd (ASX: LYC). The market never appeared overly convinced with the deal and seems to be pleased with this news. The Lynas share price is down over 5% today.

Goodman Group higher.

The Goodman Group (ASX: GMG) share price is up 4.5% after the real estate investment trust reported an 11.4% increase in operating profit in FY 2019. A key driver of this growth was its Property Investment segment which achieved strong returns across the year including like-for-like net property income growth of 3.3%.

Best and worst performers.

The best performer on the ASX 200 index on Friday has been the Mayne Pharma Group Ltd (ASX: MYX) share price with a 9.5% gain. After initially tumbling lower following the release of its full year results, the pharmaceutical company’s shares have rebounded and charged notably higher to lead the index. The worst performer by some distance today is the Costa share price with its 15.5% decline.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd, COSTA GRP FPO, and Wesfarmers Limited. 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 Scott Phillips.

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