Tower (ASX:TWR) voluntarily refunds $7.2M: ASX secures 6th week of gains

Market Reports

by Katrina Bullock

The Australian share market made a comeback this afternoon to finish 0.1 per cent higher today, falling just short of the 6,000 point level. The market was buoyed by a strong performance from the Financials sector.

At the closing bell the S&P/ASX 200 index closed 7 points higher to finish at 5,999.

Over the week the market gained 4.1 per cent or 243 points. This marks the ASX’s 6th week of gains as the market continues to recover from effects of the Covid 19 pandemic.

Futures markets

Dow futures are suggesting a rise of 236 points.
S&P 500 futures are eyeing a rise of 23 points.
The Nasdaq futures are eyeing lift of 57 points.
And the ASX200 futures are eyeing a 4 point fall on Tuesday morning.

Broker moves

Citi’s favourite small cap stock in the retail sector, Beacon Lighting (ASX:BLX) has been rated as a buy, with a 12 month price target of $1.24. Citi says the federal government's latest stimulus for the home building industry has underscored Beacon Lighting's position. The broker believes the business faces limited competition from other retail and leisure categories as its stores remained open during the lockdown, and there’s nothing like being stuck at home to inspire some good old fashioned home renovations. Shares in Beacon Lighting (ASX:BLX) closed 0.5 per cent higher at $1.07.

Company news

New Zealand Insurance Company, Tower (ASX:TWR) is refunding customers to the tune of $7.2 million due to the lower cost of car claims during the covid lock down period. Tower’s CEO, Richard Harding says that every customer will be refunded part of the car insurance premiums they paid during the level 3 and 4 lockdowns because passing on the savings to customers is the “right thing to do”. For most customers this will mean a refund of between 40 and 45 per cent of the car insurance premiums they dished out between the 24th of March and the 13th of May 2020. Shares in Tower (ASX:TWR) are flat at 57 cents.

Online retailer, (ASX:KGN) has released an impressive trading update for the fourth quarter-to-date. Compared to the same period last year, Kogan’s gross sales grew by more than 100 per cent.

Mineral explorer, Encounter Resources (ASX:ENR) has commenced exploration of the Paterson Province in Western Australia under its earn-in and joint venture agreement with IGO (ASX:IGO).

Regenerative medicine company, Avita Medical (ASX:AVH) has received Foreign Investment Review Board approval to redomicile the company and its subsidiaries from Australia to the US.

R&D company Silex Systems (ASX:SLX) has announced that the 2016 Sales Agreement between Global Laser Enrichment and the US Department of Energy has been amended to better align with current nuclear fuel market conditions.

Best and worst performers of the day

The best performing sector was Financials adding 1.9 per cent while the worst performing sector was Health Care shedding 2.8 per cent.

The best performing stock in the S&P/ASX 200 was Pilbara Minerals (ASX:PLS), rising 22.4 per cent to close at $0.35. Shares in Bank of Queensland (ASX:BOQ) and Sydney Airport (ASX:SYD) followed higher.

The worst performing stock in the S&P/ASX 200 was Nanosonics (ASX:NAN), dropping 5.7 per cent to close at $6.93. Shares in Appen (ASX:APX) and Pro Medicus (ASX:PME) followed lower.

Asian markets

Are higher:Japan’s Nikkei has added 0.6 per cent, Hong Kong’s Hang Seng has added 0.7 per cent and the Shanghai Composite has gained 0.2 per cent.

Wall Street

Wrapped up our four trading days this week higher: The Dow Jones added 3.4 per cent, The S&P 500 added 2.2 per cent and the tech heavy Nasdaq gained 1.3 per cent.

Commodities and the dollar

Gold is trading at US$1,711 an ounce.
Iron ore price fell 2.0 per cent to US$99.24.
Its futures are pointing to a fall of 0.9 per cent.
Light crude is US$0.22 higher at US$38.22 barrel.
One Australian dollar is buying 69.88 US cents.

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