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ASX 200 drops 0.6%, Afterpay hits a new record

The S&P/ASX 200 Index (ASX: XJO) fell by 0.6% today to 5,919 points.

The alarming COVID-19 spread continues in Melbourne with Victoria reporting 288 new cases today. However, two new infections in NSW that seemingly came from a Sydney pub last weekend may cause more concern for the market next week if there is still community transmission occurring in Sydney.

Afterpay Ltd (ASX: APT) share price hits a new record

Just after midday the Afterpay share price rose to above $76.50, hitting a new record.

The ASX 200 buy now, pay later business has been unstoppable over the past few months as it recovered from the March 2020 share market selloff.

Over the past month alone the Afterpay share price has gone up by almost 39%.

Brokers have been increasing their share price targets for Afterpay with the company continuing to generate strong underlying sales growth each month.

Avita Therapeutics Inc (ASX: AVH) share price drops 7.5%

The healthcare company gave a business update for the fourth quarter of its FY20 and also for the full year.

In the fourth quarter, sales for the RECELL system in the US was US$3.79 million, an increase of 0.2% from the third quarter. Total global net revenue for the fourth quarter was US$3.88 million, a decrease of 1.6% compared to the previous quarter.

For the full year the ASX 200 company’s total sales were approximately US$14.3 million, which was an increase of 160% compared to the previous year. FY20 RECELL system sales were US$13.8 million, up 213% compared to last year.

Polynovo Ltd (ASX: PNV) share price drops 0.4%

Polynovo provided a trading update today and also updated the market about the Pivotal trial protocol.

The US FDA has given formal feedback to the company, including a request for some additional information including a formalisation of the review points through the trial.

The company is working through a response to the FDA, which may delay the commencement of the trial recruitment.

In terms of the trading update, June 2020 was a record sales month in the US. The company has opened seven new hospital accounts. Over the past 12 months there has been a 67% increase in hospital accounts in the US. PolyNovo was able to achieve this growth despite the COVID-19 impacts on many businesses.

The ASX 200 company also announced its first sale in the UK. There have been six operations in England and Scotland, therefore the company is expecting additional new term sales.

In the EU there have been numerous applications of the BTM in the DACH countries of Germany, Austria and Switzerland. Sales are growing as PolyNovo gains traction across the region.

FY20 product sales are likely to be at least twice as high compared to FY19. Sales in the quarter to 30 June 2020 were 33% greater than the previous quarter.

Chorus Ltd (ASX: CNU) share price falls 7.5%

The ASX 200 New Zealand telco suffered a fall after telling the market that the lockdown period had a significant impact on its fourth quarter.

Restrictions on non-essential activity reduced fibre installations by around 15,000 and halted the UFB2 rollout.

The lockdowns also reduced fibre installations and constraints on door to door marketing saw Q4 fibre connection growth drop to 27,000 from 32,000 in the third quarter.

Chorus provided $5 million of financial support to service companies to assist with reduced field force workflow and revenue and help retain the workforce for rapid resumption of work in ‘alert level 3’.

Total fixed line connections declined by 4,000 to 1,415,000 and broadband connections returned to the second quarter level of 1,206,000 with growth of 4,000.

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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 Avita Medical Limited and POLYNOVO FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Avita Medical 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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