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The ASX 200 sank almost 2% today

ASX 200
Credit: Cimexus

The S&P/ASX 200 Index (ASX: XJO) dropped by around 2% today, falling by 1.7% to 6,051 points.

Here are some of the highlights from the ASX today:

Widespread selling

Overnight there was a selloff in international markets, seemingly on worries about a resurgence of global COVID-19 cases. The US election is also getting very close.

Investors sold off some ASX 200 shares quite heavily. The Avita Therapeutics Inc (ASX: AVH) share price dropped more than 4.5%, the Credit Corp Group Limited (ASX: CCP) share price fell more than 4.75% and the Regis Resources Limited (ASX: RRL) share price also dropped another 4.4%.

Some of the most popular buy now, pay later shares also got sold off. The Zip Co Ltd (ASX: Z1P) share price fell more than 5% and the Afterpay Ltd (ASX: APT) share price dropped more than 4.5%.

Corporate Travel Management Ltd (ASX: CTD)

At its AGM, the travel business announced a trading update for the first quarter of FY21.

It said that it had generated revenue of $9.6 million per month. Corporate Travel generated an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $2.4 million per month. The company said that the cash burn was an average of $5 million per month.

However, September was the best month since the onset of COVID-19 with an underlying EBITDA loss of $1.6 million and the cash burn was down to $3.5 million.

Corporate Travel said that its Australia and New Zealand business was profitable for the quarter with positive signs of borders opening. In Europe the lockdowns are reducing activity but close to breakeven. The integration of Transport & Travel has started. In Asia the company pointed to the Singapore – Hong Kong travel bubble with more to come.

The ASX 200 travel business has zero drawn debt, with $120 million of net cash after the successful capital raising.

Corporate Travel’s share price dropped by around 7.5% today.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The share price of Bendigo Bank rose around 2% after giving an update for the first quarter of FY21.

Bendigo Bank said that its total lending continues to be a strength with year to date growth at 11% and residential lending at 16.1%, both of those rates being well above the system.

Management were pleased to report that the net interest margin (NIM) continues to be well managed, the bank saw the NIM rise by one basis point to 2.3%.

The regional bank also gave an update about its loan book. It said that 6,797 customer accounts remain on deferral, which was down 69% from the peak on 31 May 2020. The value of the accounts where repayments have been deferred is approximately $2.5 billion, down from the peak of $6.9 billion in June.

Customers transitioning away from deferral arrangements will continue to occur through the remainder of October and November as repayment deferral periods expire.

Blackmores Limited (ASX: BKL)

Blackmores also held its AGM today. One of the main bits of news from it was that Blackmores is going to divest its Global Therapeutics business for $27 million. It’s going to be sold to McPherson’s Ltd (ASX: MCP).

The business was only acquired in May 2016. Its product range draws upon traditional Chinese medicine in combination with contemporary herbal treatments.

Blackmores’ CEO Alastair Symington and his team has been reviewing Blackmores’ various brands to decide to what to divest. Global Therapeutics was deemed to be a non-core brand.

As part of the sale, the Fusion Health and Oriental Botanicals brands will also be sold. The transaction is scheduled for completion on 30 November 2020.

In reaction to the AGM update and the sale, the Blackmores share price rose 0.1%. 

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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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Corporate Travel Management Limited. 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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