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ASX 200 lunch update: CBA higher, Fortescue & Nearmap tumble

The Motley Fool logo The Motley Fool 1/30/2020 James Mickleboro
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At lunch on Thursday the S&P/ASX 200 index has given back its morning gains and is trading lower. At the time of writing the index is down 0.1% to 7,022.7 points.

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

Nearmap downgrades guidance.   

Hot on the heels of the Treasury Wine Estates Ltd (ASX: TWE) guidance downgrade, fellow popular growth share Nearmap Ltd (ASX: NEA) has been sold off following its own guidance downgrade. The loss of a major contract and two churn/downgrade events have led to management reducing its FY 2020 annualised contract value (ACV) guidance to the range of $102 million to $110 million. This compares to its previous guidance of $116 million to $120 million.

Fortescue announce record half year shipments.

The Fortescue Metals Group Limited (ASX: FMG) share price is trading lower on Thursday despite smashing records in the first half. During the second quarter Fortescue’s shipments were up 9% on the prior corresponding period, helping to drive first half shipments to a record 88.6mt. In light of its strong first half, management now expects full year shipments to be at the upper end of its guidance range of 170 to 175mt. It has also lowered its costs guidance to a range of US$12.75 to US$13.25/wmt.

CBA-backed Klarna launches in Australia

Another buy now pay later provider has launched in Australia and will be battling it out with Afterpay Ltd (ASX: APT). This morning banking giant Commonwealth Bank of Australia (ASX: CBA) revealed that Klarna has now launched in Australia. The bank’s 7 million digitally active customers will be able to immediately access Klarna through its banking app. Consumers that aren’t with CBA can use the service via the Klarna app. Klarna has more than 85 million customers using its service to purchase goods and services from 200,000 merchants. The CBA share price is pushing 0.65% higher on the news.

Best and worst performers.

The best performer on the ASX 200 on Thursday has been the Gold Road Resources Ltd (ASX: GOR) share price with a gain of 7%. This follows the release of the gold miner’s quarterly update this morning. That update revealed production at the top end of its guidance range. The worst performer on the index by some distance is the Nearmap share price with its 23.5% decline following its guidance downgrade.

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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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and Treasury Wine Estates 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.

The post ASX 200 lunch update: CBA higher, Fortescue & Nearmap tumble appeared first on Motley Fool Australia.


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