ASX 200 down 0.3%: Altium sinks, Premier Investments rockets, energy shares rise

Altium Limited (ASX:ALU) and Premier Investments Limited (ASX:PMV) shares are making a splash on the ASX 200 on Wednesday…

At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is on course to make it three days of declines in a row. The benchmark index is currently down 0.3% to 6,660.7 points.

Here's what has been happening on the market today:

Premier Investments update impresses.

The Premier Investments Limited (ASX: PMV) share price is surging higher today. The catalyst for this has been an impressive trading update which included guidance for the first half of FY 2021. For the 27 weeks ending 30 January, the conglomerate expects its retail segment to achieve earnings before interest and tax (EBIT) of between $221 million to $233 million. This will be up between 75% and 85% on the 26 weeks ended 25 January 2020. Strong like for like sales and cost management have driven the stellar growth.

Altium sinks lower.

The Altium Limited (ASX: ALU) share price has come under pressure again on Wednesday. Investors have been selling the electronic design software provider's shares after it revealed that COVID-19 had impacted its sales during the first half. As a result, Altium is expecting to deliver revenue of around US$89.6 million for the six months, which will be down 3% on the prior corresponding period. This morning analysts at Macquarie responded to the update by retaining their neutral rating but cutting their price target by 11.5% to $31.00.

Energy shares push higher.

One area of the share market pushing higher on Wednesday is the energy sector. The likes of Beach Energy Limited (ASX: BPT) and Santos Ltd (ASX: STO) are recording solid gains after oil prices pushed higher overnight. At the time of writing, the S&P/ASX 200 Energy index is up a solid 3.2% to 8,977.1 points.

Best and worst ASX 200 performers.

The best performer on the ASX 200 today has been the Premier Investments share price with a sizeable 14% gain. This follows the release of its aforementioned update. The worst performer has been the PolyNovo Ltd (ASX: PNV) share price with a decline of 7%. Investors have been selling the medical device company's shares following the release of a trading update this week.

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 and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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