At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. The benchmark index is down 0.1% to 7,298.8 points.
Here’s what is happening on the market today:
Metcash full year results
The Metcash Limited (ASX: MTS) share price is edging higher today after the release of its full year results. For the 12 months ended 30 April, Metcash reported a 9.9% increase in revenue to $14.3 billion and a 27.1% jump in underlying profit after tax to $252.7 million. This allowed Metcash to declare a full year fully franked 17.5 cents per share dividend, up 40% on the prior corresponding period. The company also announced a $175 million share buyback.
Travel shares under pressure
One area of the market that is acting as a drag on proceedings today is the travel sector. Lockdowns in Sydney and numerous state border closures have led to concerns that the domestic travel market recovery could take longer than expected. Companies such as Flight Centre Travel Group Ltd (ASX: FLT) and Qantas Airways Limited (ASX: QAN) are trading notably lower today.
The Costa Group Holdings Ltd (ASX: CGC) share price is trading lower today after completing its institutional entitlement offer. The horticulture company has raised $114 million at an offer price of $3.00 per new share. This represents an 11.8% discount to its last close price. Costa is raising funds to acquire the business and assets of 2PH Farms for $200 million in cash. Queensland-based 2PH Farms is the largest citrus grower in northern Australia.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Monday has been the Woolworths Group Ltd (ASX: WOW) share price with a 2.5% gain. This morning Macquarie put a neutral rating and $38.40 price target on its shares. The worst performer has been the Afterpay Ltd (ASX: APT) share price with a 6% decline. This appears to have been driven by profit taking after a strong gain last week.