The ASX 200 (ASX: XJO) has risen around 1.5% so far today.
Afterpay Ltd (ASX: APT) sinks again
Since the start of September 2020 the Afterpay share price has fallen by 12%.
Yesterday Afterpay shares fell heavily when PayPal announced that consumers can pay for items costing in a range of $30 to $600. The service, initially being launched in the US, is called “Pay in 4” which it says is an interest-free instalment solution at no extra cost.
Merchants won’t have to pay more fees to offer the option. It will be included in the existing pay structure.
The service’s target launch is in early in the fourth quarter of 2020, which suggests that October 2020 is the aim.
AMP Limited (ASX: AMP)
The AMP share price is up 6% this morning.
The AMP Board is going to review its whole portfolio of assets and businesses. Whilst AMP is committed to its transformation strategy, the company acknowledged that it sometimes receives unsolicited interest in its assets and businesses. There has been a recent uptick in interest and enquiries.
AMP will review all the options in a “considered and holistic manner”. It will think about the merits as well as the potential separation costs and ‘dis-synergies’ to focus on maximising shareholder value.
The review may conclude the existing mix delivers the best value and therefore there wouldn’t be a recommendation to pursue any specific transaction.
AMP Chair Debra Hazelton said: “The Board believes that AMP has high-quality businesses with significant strategic value. The Board and management firmly believe in our existing strategy, including a repivot to private markets in AMP Capital and are confident that this will deliver long-term value for shareholders.
“However, we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner.”
Nufarm Limited (ASX: NUF)
Nufarm announced that it expects to recognise a major impairment in the FY20 result. It expects that the value of its European assets will be impaired by approximately $215 million, comprising a $190 million impairment of intangible assets and a dercognition of tax assets of around $25 million.
This is due to the recent operating performance and lower outlook for future earnings based on margin pressure because of higher manufacturing costs and increased competition.
In terms of financial guidance, Nufarm expects underlying EBITDA to be between $290 million to $300 million (click here to learn what EBITDA means). After the sale of its South American businesses, underlying EBITDA from continuing operations is expected to be between $230 million to $240 million.
The drought breaking in Australia has helped, with second half underlying EBITDA doubling in ANZ with a good outlook for summer. EBITDA is also up in North America, particularly Canada. Asia is also benefiting from improved weather. However, Europe has declined heavily due to hot, dry weather.
Other news
The team over at Rask Media have covered the rest of today’s news, so make sure you head over there for more ASX share market coverage.
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