Saturday, August 15, 2020

ASX 200 drops 0.6% today, Afterpay share price down 7%

ASX 200

The S&P/ASX 200 Index (ASX: XJO) fell by 0.6% today, dropping back to 5,941 points.

Plenty of ASX shares were brought back down to Earth today. The number of COVID-19 cases in the south east of Australia continues to grow.

Afterpay Ltd (ASX: APT) share price falls 7.2%

The ASX 200 buy now, pay later share suffered a heavy selloff today. It finished the day at $66.55. This is still higher than the $66 price than co-founders Anthony Eisen and Nicholas Molnar sold their shares at.

Afterpay recently raised $650 million through a fully underwritten institutional placement to strengthen its balance sheet and accelerate growth.

It’s now undertaking a share purchase plan to raise approximately $150 million.

Altium Limited (ASX: ALU) share price falls 3.6%

The electronic PCB software business announced a revenue update to the market today.

The ASX 200 share announced that in FY20 its worldwide revenue grew by 10% to US$189 million and worldwide sales grew by 10% to US$194 million.

Altium also reported a 14% increased in new Altium Designer seats sold and it also saw record growth of 17% in the subscription base to more than 50,000 subscribers.

The ASX tech share finished FY20 with US$90 million of cash.

Altium CEO Mr Aram Mirkazemi said: “While COVID-19 prevented us from reaching our long standing aspirational goal of $200 million in revenue, conditions surrounding COVID-19 have dramatically accelerated our movement towards market dominance and the implementation of our transformative agenda for the industry.”

The new cloud platform called Altium 365 now has over 2,500 businesses and almost 5,000 active users on the platform.

Altium is also working on its digital sales capabilities and it’s still aiming for 100,000 subscribers by 2025.

Pushpay Holdings Ltd (ASX: PPH) share selloff

The Pushpay share price dropped 10.8% today. There was a selldown of shares by its largest shareholder.

The Huljich family entered into a block trade agreement yesterday with JP Morgan and UBS to sell 25% of their shares. The family is expected to still be the largest shareholder after the sale with a combined stake of 43.2 million shares and Peter Huljich will remain on the Pushpay board with Christopher Huljich continuing to act as his alternate director.

The shares were sold for NZ$8.60 per share. This amounted to NZ$123.85 million.

Peter Huljich said: “The outlook for Pushpay remains positive. We look forward to continuing to support the company as it seeks to deliver upon its strategy of becoming the preferred provider of mission-critical software to the US faith sector. The Huljich family confirms that it does not have any current intention to sell further shares in Pushpay and has provided an undertaking to the underwriters not to sell further shares in Pushpay until after Pushpay’s interim results are announced on the NZX and ASX.”

Woodside Petroleum Limited (ASX: WPL) announces write off

After the market had shut for the day the company announced that it has undertaken a review of the carrying value of its assets as of 30 June 2020.

The ASX 200 resources giant expects to recognise US$3.92 billion of post-tax impairments in its 30 June 2020 half year result.

That total comprises of two elements. The first part is $2.76 billion for oil and gas properties. The second part is $1.16 billion for exploration and evaluation assets.

Woodside also expects to include a post-tax onerous contract provision for the Corpus Christi LNG sale and purchase agreement of US$447 million.

About 80% of the impairments are due to the significant and immediate reduction in oil and natural gas prices assumed up to 2025. There is also increased uncertainty due to the COVID-19 pandemic, macroeconomic factors and increased risks of higher carbon pricing.

More reading

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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.

The post ASX 200 drops 0.6% today, Afterpay share price down 7% appeared first on Motley Fool Australia.


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