The S&P/ASX 200 Index (ASX: XJO) was down 2.3% at the start of the day, but it ended the day flat at 5,221 points.
One of the interesting developments from today was that Energy Minister Angus Taylor announced that Australia would build an energy reserve whilst oil prices were so low. Australia will spend around $100 million on the initiative.
Here are some of the highlights from the ASX today:
Retail sales surge
Whilst the rest of the economy is going through a rough spot, certain elements of the retail sector saw a roaring trade. According to the official ABS stats, total retail turnover surged 8.2% in March. This was the strongest-ever monthly growth.
The two biggest areas of demand were supermarkets and items related to home offices. The supermarket & grocery category saw a 22.4% increase in turnover. But food outlets and clothing saw a heavy fall.
Economists are already predicting that the April figures will show the biggest decline in history.
Looking at share prices, the Woolworths Group Ltd (ASX: WOW) share price rose 1.2%, the Coles Group Limited (ASX: COL) share price increased by 1.4% and the Wesfarmers Ltd (ASX: WES) share price increased 1.2%, but the Metcash Limited (ASX: MTS) share price fell 3.8%.
Large capital raising by Ramsay Health Care Limited (ASX: RHC)
Private hospital operator Ramsay is looking to raise up to $1.4 billion from investors in a capital raising at a share price of $56 – a 12.9% discount to the last closing price.
The money will be used to strengthen its balance sheet for these uncertain times. It could also help position Ramsay for future growth opportunities.
Sadly for Ramsay shareholders, the great dividend record is going to come to an end. It is temporarily suspending its dividend.
It has managed to successfully negotiate with lenders to waive covenants for up to and including the 31 December 2020 testing date.
A2 Milk Company Ltd (ASX: A2M) upgrades FY20 guidance
A2 Milk gave an update today. It has continued to see strong demand for its products over the past couple of months. This means that revenue is higher than expectations and expenses are also lower than expected due to less travel and less recruitment costs.
The company has said it now expects the FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) margin to be between 31% to 32%. However, it will continue to target a 30% EBITDA margin for the medium-term.
