ASX 200 drops, ANZ up and Afterpay rises

The ASX 200 dropped today. Afterpay managed to excite investors.

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The S&P/ASX 200 Index (ASX: XJO) fell by around 0.5% today to 7,252 points.

Here are some of the highlights from the ASX:

Afterpay Ltd (ASX: APT)

The Afterpay share price went up around 1.6%. Afterpay, the buy now, pay later business revealed its money app that it plans to officially launch later this year.

This new money app is going to be called ‘Money by Afterpay’ which will begin its roll out today with an Australian staff pilot, with a full Australian customer launch expected in October 2021.

Afterpay’s money app will offer one daily account with a physical debit card, digital wallet offerings and the ability to make and receive real time payments. This app will be offered with no fees.

It will also come with the ability to open up to 15 different savings accounts with an interest rate of 1% per annum.

The Afterpay executive vice president of new platforms, Lee Hatton, said:

We’ve built upon the trust and love of the Afterpay brand to bring Gen Z and Millennials a money and lifestyle app that’s truly built for them. Combining money management with the BNPL offering will allow us to help customers spend, save and play just by using money as their primary app.

The first release in July is just the beginning for us. We will deliver new and unique features to customers consistently throughout the year and we’ll be nimble enough to quickly act on feedback in near real-time.

JB Hi-Fi Limited (ASX: JBH)

One of the top-performing shares in the ASX 200 today was the electronics retailer.

It released its fourth quarter sales update as well as expectations of its profit numbers for FY21.

In the quarter ending 30 June 2021, JB Hi-Fi Australia saw total sales drop 8.2%, in New Zealand total sales rose 46.9% and The Good Guys total sales declined 1.5% respectively against the FY20 final quarter numbers.

In July 2021, it’s expecting disruption and “variability” to sales as a result of various lockdowns and store closures in places like Sydney and Melbourne.

The company said that for FY21, its preliminary and unaudited numbers showed total sales were up 12.6% to $8.9 billion, earnings before interest and tax (EBIT) grew 53.8% to $743 million and net profit after tax (NPAT) went up 67.4% to $506.1 million. Online sales climbed 78.1% to $1.1 billion, representing 11.9% of total sales.

It also said it managed its gross margins, with strong improvements. This, combined with disciplined cost control and strong sales growth, led to “significant” operating leverage.

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The ANZ share price was one of the few financial businesses in the ASX 200 to be in the green today, rising 0.6%.

ANZ announced yesterday evening that it intends to buy-back up to $1.5 billion of shares on-market as part of its capital management plan.

The ANZ Chair Paul O’Sullivan said:

Despite the very real challenges being experienced by many of our customers, we have the financial strength to continue to support our customers, while also returning surplus capital to shareholders. After reviewing options, we consider an on-market buy-back to be the most prudent, fairest and flexible method to return capital in the current environment.

Our capital position may allow future capital returns to be considered, however we will continue to focus on balanced and prudent outcomes for all stakeholders.

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Motley Fool contributor 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 and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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