ASX 200 rises on Tuesday

The S&P/ASX 200 Index (ASX:XJO) went up by 1.4% today. Collins Foods (ASX:CKF) shot higher and Aussie house prices keep rising.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) went up 1.1% today to 6,589 points.

Here are some of the highlights from the ASX today:

Collins Foods Ltd (ASX: CKF) FY21 half-year result

The fast food business boasted of generating strong earnings growth in FY20 despite COVID-19 impacts.

Collins Foods revenue grew 11.3% to almost $500 million. KFC Australia was the star performer with revenue growth of 15.6% to $415.5 million and same store sale growth of 12.4%.

The company decided to close its nine remaining Sizzler restaurants in Australia, which were shut by 15 November 2020 following a brand review.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 10.5% to $63.7 million – 'underlying' means before AASB 16.

Underlying net profit after tax (NPAT) went up by 15.1% to $27.5 million and net operating cash flow, before AASB 16, rose by $23.6 million to $57.3 million.

Net debt was down to $170.7 million from $217.3 million. Collins Foods decided to declare an interim dividend of 10.5 cents per share, which was an increase of 10.5%.

Collins Foods Drew O'Malley said: "Despite the challenges imposed by COVID-19, the business is in a strong position financially and operationally. Net debt and leverage levels have significantly reduced due to the strength of our operating cashflows, and the challenges brought on by the pandemic have allowed us to make significant improvements to digital and delivery platforms, which continue to perform well."

The Collins Foods share price went up around 11% in reaction to this result.

Humm Group Limited (ASX: HUM) and Douugh Ltd (ASX: DOU)

These two businesses announced a joint venture today to expand into the US.

Humm, which used to be called FlexiGroup, announced that neobank Douugh will offer a Douugh 'powered by humm' branded buy now pay anywhere solution for the US market in the first half of 2022.

Douugh will utilise humm's technology platform to manage a line of credit up to US$1,000 to eligible customers through a 'credit jar' on Douugh's platform and virtual Mastercard. This is going to be an interest-free option which will be paid back over six weekly instalments.

This is first proposed joint venture generated by humm ventures, an initiative to explore new and innovative ways to expand the global reach and distribution of humm.

Humm CEO Rebecca James said: "Through our proposed joint venture with Douugh, we are taking our first steps into the United States as a company. At the same time, we are demonstrating how humm ventures can create innovative and novel ways to take humm's world class technology and capabilities to expand its relevance and distribution."

Humm is also going invest $2.5 million into Douugh's capital raising at an issue price of $0.22 per share.

The humm share price went up 1.2% and the Douugh share price went up 9.4%. 

Aussie house prices

CoreLogic's latest monthly update showed that Australian house prices went up by 0.8% across the country in November 2020.

Sydney prices rose 0.4%, Melbourne prices grew 0.7%, Brisbane prices went up 0.6% and every other city went up more than 1% with Canberra and Darwin both going up almost 2%.

As you may be able to guess, the big four ASX banks responded by going higher. The Commonwealth Bank of Australia (ASX: CBA) share price went up 1.5% and the Westpac Banking Corp (ASX: WBC) share price rose 0.75%.

Santos Ltd (ASX: STO)

The oil and gas giant upgraded its 2020 guidance today. It said that its 2020 production guidance is now going to be in a range of 87 million to 89 million barrels of oil equivalent. This was an increase from previous guidance of 83 million to 88 million barrels of oil equivalent.

Santos also lowered its production cost guidance to $8 to $8.05 per barrel of oil equivalent.

The Santos share price rose 0.8% today. 

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods 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.

More on Share Market News

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Baby Bunting, Bellevue Gold, Cettire, and New Hope shares are rising today

These ASX shares are having a good session. But why are investors buying their shares?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »

woman holding her baby and looking at her phone happy at the rising share price
Broker Notes

3 ASX All Ords shares that brokers tip will grow 30% to 40% this year

The experts say these three ASX All Ords stocks have great growth ahead of them.

Read more »

A man stands with his arms crossed in an X shape.
Mergers & Acquisitions

Boral share price falls after rejecting Seven Group takeover

The offer 'undervalues' Boral according to its committee.

Read more »

A businessman hugs his computer and smiles.
Opinions

3 Australian shares to buy and hold forever in your ASX portfolio

I think these three ASX shares can outlive us all.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A positive session is expected for the ASX 200 on Tuesday.

Read more »

A person sitting at a desk smiling and looking at a computer.
Investing Strategies

The best ASX shares to invest $500 in right now

Creating wealth isn't just for the privileged. Just a few hundred dollars can get you started in stock investing.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Cheap Shares

2 'materially undervalued' ASX 200 shares to buy while they're at 'attractive value'

Is there a better feeling in investing than grabbing stocks for cheap then watching while everyone else catches on to…

Read more »