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ASX 200 falls 2%, ASX travel shares drop heavily

The S&P/ASX 200 Index (ASX: XJO) fell by more than 2% today to 5,720 points.

Here are some of the highlights from the share market today:

ASX 200 travel shares decline

The travel sector suffered a heavy selloff today, three of the worst performing shares in the ASX 200 were from the travel industry.

The Corporate Travel Management Ltd (ASX: CTD) share price dropped 9.9%. The Flight Centre Travel Group Ltd (ASX: FLT) share price fell 8.5%. Webjet Limited (ASX: WEB) saw a share price drop of 7.9%.

Several other ASX travel shares declined too. Airline Qantas Airways Limited (ASX: QAN) suffered a 3.6% share price drop. The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price fell 4.6%. The Helloworld Travel Ltd (ASX: HLO) share price dropped 5.6%.

Looking at New Zealand travel shares, the Auckland International Airport Limited (ASX: AIA) share price fell 2.3% and the Air New Zealand Limited (ASX: AIZ) share price declined by almost 5%. Travel software company Serko Ltd (ASX: SKO) saw its share price fell 3.8%.

Healius Ltd (ASX: HLS) share price soars

The ASX 200 healthcare company experienced a 19% rise of its share price.

Healius announced today it has entered into a binding agreement to sell its medical centres business for $500 million to BGH Capital on a cash and debt free basis. It will retain the day hospitals and IVF segments.

Dr Malcolm Parmenter, the managing director and CEO, explained why Healius sold the division and what it will do with the money:

“This sale is consistent with our strategy of simplifying our portfolio and focusing on our leading and scalable diagnostics and day hospital business, in order to deliver on our mission of seeking and sustaining life-enhancing healthcare through people who care.

“The proceeds will strengthen the company, reducing our net debt and freeing up capital for investment, while enabling shareholders to realise the value of the medical centres business, which has not been reflected in our share price.”

Healius is seeing more normal trading levels as the economy opens up from the COVID-19 restrictions. Revenues are recovering strongly in line with the opening of the broader economy, according to Healius.

The ASX 200 business also said that it had signed the refinance of its syndicated bank debt facility of $500 million which was due to mature in January 2021. The facility has been increased by $70 million to $570 million and its maturity has been extended to January 2024 with unchanged covenants.

Super Retail Group Ltd (ASX: SUL) capital raising and trading update

Super Retail went into a trading halt this morning to announce a capital raising and trading update.

The ASX 200 retail business is going to do an underwritten accelerated pro-rata non-renounceable entitlement offer to raise approximately $203 million at a fixed price of $7.19 per share.

The equity raising will enable the company to keep executing its strategy and pursue its strategic growth initiatives.

In terms of trading, the company has seen a strong bounce back for its overall sales. Super Retail’s like for like sales fell by 26.2% in April 2020 compared to April 2019. However, Super Retail’s group like for like sales increased by 26.5% in May 2020 compared to May 2019.

We’re only halfway through June but sales growth has continued to benefit from the strong consumer environment.

Looking at the revenue for the financial year to date to 31 May 2020, total revenue was $2.52 billion, which was up 1.9%. However, like for like sales were only up 1.2%. The company stated that the gross margin percentage was down over April and May, impacted by a shift in product mix and a higher proportion of online sales.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Helloworld Limited and Serko Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Super Retail Group Limited, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Helloworld Limited, and Serko Ltd. 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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