At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) has failed to follow the lead of U.S. markets and looks set to end the week with a decline. The benchmark index is currently down 0.45% to 6,014.5 points.
Here's what is happening on the market today:
REA Group result impresses.
The REA Group Limited (ASX: REA) share price is pushing higher on Friday after investors responded positively to the property listings company's full year result. Despite facing significant headwinds during FY 2020, REA Group battled through to deliver revenue of $820.3 million and EBITDA of $492.1 million. This was a 6% and 5% year on year decline, respectively. The company's EBITDA was ahead of the analyst consensus estimate of $468 million.
Insurance Australia profit slump.
The Insurance Australia Group Ltd (ASX: IAG) share price has dropped lower today after the release of the insurance giant's full year results. For the 12 months ended 30 June 2020, IAG reported a 5.2% increase in revenue to $18,576 million but a 49.6% decline in net profit from continuing operations to $439 million. A material narrowing in its insurance margins was responsible for the profit slump. No final dividend will be paid to shareholders.
Broker downgrades.
A couple of popular shares are dropping lower today after being downgraded by brokers. The ResMed Inc. (ASX: RMD) share price is lower after Morgan Stanley downgraded the medical device company to an equal-weight rating with a price target of $25.40. And the TPG Telecom Ltd (ASX: TPG) share price is also tumbling lower after UBS downgraded the telco to a sell rating with a lowered price target of $7.20.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Friday has been the Domain Holdings Australia Ltd (ASX: DHG) share price with a 5.5% gain. Investors have been buying its shares following the strong result release from rival REA Group. Going the other way, the worst performer is the Virgin Money UK PLC (ASX: VUK) share price with a 4% decline. Earlier this week the UK-based bank was downgraded to a reduce rating by analysts at Morgans.
