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ASX 200 up 0.7%: Big four banks storm higher, Blackmores disappoints, Xero acquisition

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain thanks largely to gains in the banking sector. The benchmark index is currently up 0.7% to 6,170.8 points.

Here’s what has been happening:

Big four banks charge higher.

The big four banks are all on form on Tuesday and are helping to drive the benchmark index higher. The best performer in the group is the National Australia Bank Ltd (ASX: NAB) share price with a 4.5% gain. This could be down to bargain hunters believing the banks have been oversold or optimism over a potential coronavirus vaccine. The Trump administration is reportedly going to fast track an experimental vaccine from the UK.

Blackmores disappoints.

The Blackmores Limited (ASX: BKL) share price is sinking lower on Tuesday after its full year result disappointed the market. In FY 2020 the health supplements company posted a 3% decline in revenue to $568 million and a 66% reduction in net profit after tax to $18.1 million. Management advised that it expects to deliver profit growth in FY 2021 but warned that its growth would come predominantly from the second half. Investors may be waiting for proof of this before believing it.

Xero acquisition.

The Xero Limited (ASX: XRO) share price broke through the $100 mark this morning and hit a record high of $101.24. Investors were buying the cloud-based business and accounting company’s shares after it announced the $80 million acquisition of Waddle. It is a cloud-based lending platform that helps small businesses access capital through invoice financing. Management believes the acquisition aligns with its strategy to grow the small business platform and to address critical small business financial needs.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Bingo Industries Ltd (ASX: BIN) share price with a 14% gain. This follows the release of a full year result which revealed a 40.8% lift in underlying EBITDA to $152.1 million. The worst performer on the index is the Nanosonics Ltd (ASX: NAN) share price with a 9% decline. This morning it released its full year results and disappointingly advised that its new product launch was likely to be delayed until FY 2022.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Nanosonics 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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