As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,313.90 points, up 0.15% in the past 5 days.
During the last 5 trading days, $Credit Corp(CCP.AU)$ was up 12.74%; $FLIGHT CENTRE TRAVEL GROUP L(FLT.AU)$ added 10.48%; $New Hope(NHC.AU)$ was up 8.33%; $Ampol(ALD.AU)$ rose 7.86%; and $Virgin Money(VUK.AU)$ increased 6.54%.
1. $Credit Corp(CCP.AU)$ up 12.74% on short covering and bank sector strength
Credit Corp Group Limited provides debt ledger purchase and collection, and consumer lending services in Australia and the United States.
Bega Cheese posted the biggest percentage increase in total bearish wagers on margin among the most shorted stocks as a percentage of free float on Australia's benchmark index for the week ended July 3, accor to the most recent data compiled by Bloomberg.
$Credit Corp(CCP.AU)$ ranked as the seventh most-shorted ASX stock. In addition to the short covering, US banks are releasing their quarterly results, most of which beat the estimates. Therefore, the bank sector is lifted this week.
data from bloomberg
2. $FLIGHT CENTRE TRAVEL GROUP L(FLT.AU)$ upgrades guidance as corporate earnings outpace leisure
Flight Centre Travel Group Ltd. hit a 52-week high at A$22.4. The previous high was on May 9.
Flight Centre, a travel agent, exceeded its profit guidance for the financial year 2023, primarily due to robust corporate travel earnings, which reached a record level despite the ongoing recovery in the business travel market.
The company, along with Alliance Air Services and Ardent Leisure, upgraded its outlook for the full year, stating that earnings before interest, tax, depreciation, and amortization (EBITDA) were expected to be between $295 million and $305 million. This represents an increase from the previous guidance of $270 million to $290 million, which was issued during its half-year results.
Flight Centre's strong performance in corporate travel was driven by high airfares and a significant expansion in corporate travel clients, resulting in a record total transaction volume (TTV) of $11 billion for the financial year 2023. This surpassed the TTV of $8.9 billion achieved in 2019.
It should be noted that US airlines also exceed analysts’ estimates, jumping on surprising guidance and earnings.
3. $New Hope(NHC.AU)$ saw 2.64M Share Block Trades on Wednesday
New Hope Corporation Limited explores for, develops, produces, and processes coal, and oil and gas properties.
A block of 2.64 million shares in New Hope Corp., equivalent 0.5% of float, traded at a market value of A$13.3 million. The price was A$5.05 per share, a premium of 3.14 from Tuesday's close on ASX; New Hope rose 2.84 Tuesday and is down 19% this year.
Merrill Lynch, Morgan Stanley and UBS Investment Bank were the most active brokers in New Hope from June 18 to July 17, based on trade data they reported to Bloomberg
In addition, $New Hope(NHC.AU)$ ‘s rally might also be driven by $Ampol(ALD.AU)$’s update.
4. $Ampol(ALD.AU)$ Jumps Most in Year After Reporting Strong 1H Performance
Ampol Limited purchases, refines, distributes, and markets petroleum products in Australia, New Zealand, Singapore, and the United States.
Ampol released unaudited replacement cost operating profit (RCOP) earnings before interest and tax (EBIT) for H1 FY23, amounting to approximately $575 million.
Ampol's unaudited RCOP earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period reached around $800 million. The company credited strong earnings growth from its non-refining divisions, showing substantial year-on-year growth in RCOP EBIT in its Fuels and Infrastructure segments (excluding Lytton).
This growth was attributed to improved margins, increased volumes, and efficient management of supply imbalances caused by the refinery outage.
The reported total group fuel sales for the half-year witnessed a remarkable 24% increase, with international fuel sales rising by 8% and Australian fuel sales increasing by 13%.
The Lytton Refiner Margin (LRM) for the second quarter of the 2023 financial year stood at US$5.66 per barrel.
5. $Virgin Money(VUK.AU)$ continued its strength due to bank sector strength
Virgin Money UK PLC provides banking products and services for consumers, and small and medium sized businesses under the Clydesdale Bank, Yorkshire Bank, and Virgin Money brands in the United Kingdom.
As we mentioned last week, the surge in Virgin Money's shares, along with several other British banks, was driven by the Bank of England's announcement regarding its annual stress test.
Bank sector delivered stellar earnings this week, lifting the whole sector.
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