The S&P/ASX 200 Index (ASX: XJO) went up 2.6% today to 5,924 points, undoing some of the declines from earlier in September 2020.
Movers and shakers
There were plenty of big movements today, mostly positive ones.
Investors seem to be thinking that the news that the federal government could spend $4.5 billion to upgrade the NBN could help Service Stream quite substantially.
Service Stream has an ongoing relationship with NBN Co and it could be a beneficiary from this announcement.
Other big movers today include: AP Eagers Ltd (ASX: APE) share price went up 7.3%, the Vocus Group Ltd (ASX: VOC) share price rose 6.3%, the Flight Centre Travel Group Ltd (ASX: FLT) share price rose 6% and the Carsales.com Ltd (ASX: CAR) share price drove higher by 5.8%.
On a very positive day for the ASX 200 share market, it may unsurprising to know that gold miners were at the bottom of the ASX 200. The Ramelius Resources Limited (ASX: RMS) share price fell 7.7%, the Northern Star Resources Ltd (ASX: NST) share price fell 2% and the Resolute Mining Limited (ASX: RSG) share price dropped 1.9%.
Nufarm Limited (ASX: NUF)
Nufarm reported its FY20 result today.
It said that its net profit plunged to a $456 million loss after difficulties in some of its markets during the year, as well as impairments.
Continuing revenue increased by 6.5% to $2.85 billion. Excluding material items, continuing earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 21% to $236 million, continuing earnings before interest and tax (EBIT) fell 75% to $34 million and continuing net profit reversed to a net loss of $81 million.
No dividend was declared by the board of the ASX 200 share.
Nufarm managing director and CEO Greg Hunt said: “2020 has been an extraordinary year. The agricultural markets in which we operate across the globe have endured mixed seasonal conditions, industry-related supply issues and of course the tragedy and disruption of COVID-19.
“We have taken decisive steps to strengthen our business to deliver improved returns. We have refocused our portfolio, strengthened our balance sheet and progressed key priorities to drive better performance from our continuing businesses.
“Our earnings performance in 2020 was disappointing. While good momentum was generated in most regions in the second half of the year, weaker earnings from the North American business in the first half and a decline in European and Seed Technologies earnings resulted in underlying EBITDA from continuing operations declining by 21%.”
Sezzle Inc (ASX: SZL)
The buy now, pay later business soared today. The Sezzle share price rose 5.6% after announcing a partnership.
Sezzle is going to partner with Ally Lending, which is owned by Ally Financial – a listed business on the New York Stock Exchange.
Ally Lending enables monthly fixed-rate instalment-loan products that extend up to 60 months in length and US$40,000 per instalment plan.
Sezzle CEO and executive chairman Charlie Youakim said: “Our collaboration with Ally Lending enhances our customer financing offerings, making it possible for consumers to better manage their finances. Ally’s dedication to its customers and commitment to innovation aligns with our vision and culture – making this partnership a good fit for us.”
Sezzle said that the partnership will give merchants and shoppers access to long term financing options, complimenting Sezzle’s existing short-term, interest-free offering without adding any balance sheet impact to Sezzle.
The buy now, pay later business said Ally Lending is backed by the number one digital bank in the USA, Ally Bank. Its commitment to “do right” and “obsess over the customer” has led to a customer NPS score of 68, which is a high rating by customers for Ally Bank.
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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. recommends Sezzle Inc. The Motley Fool Australia has recommended carsales.com Limited, Flight Centre Travel Group Limited, Service Stream Limited, and Sezzle Inc. 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.