Cedar Woods (ASX:CWP) forecasts 50%+ drop in profit: Aus shares gain 1.9% over the week

Market Reports

by Katrina Bullock

The Australian share market rose in early trade, slumped mid-session as the reintroduction of some pandemic restrictions weighed on the market, then jumped in the last half an hour of trade to close 0.4 per cent higher.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 23 points higher to finish at 6,034.

Over the week, the market has gained 114 points or 1.9 per cent.

Futures markets 

Dow futures are suggesting a rise of 48 points.
S&P 500 futures are eyeing a rise of 8 points.
The Nasdaq futures are eyeing a lift of 69 points.
And the ASX200 futures are eyeing a 16 point rise on Monday morning.

Company news

Cedar Woods Properties (ASX:CWP) forecasts that its 2020 financial year net profit after tax is expected to be in the range of $20 to $21 million – a major freefall from the $48.6 million profit recorded in the 2019 financial year. The company attributes the fall to a pattern of delayed settlements brought about by the pandemic restrictions. This is reflected in the increased future sales coming down the pipeline. At the end of June 2020, the Company had approximately $360 million in presales, up from $330 million at the same time last year. Cedar Woods says it has “corporate bank facility headroom of $68 million” and is well positioned to continue to fund the development of its portfolio and implement growth initiatives. Shares in Cedar Woods Properties (ASX:CWP) closed 1.4 per cent higher at $5.06.

Medical cannabis supplier, Cann Group (ASX:CAN) announced a $24.3 million capital raising this morning to support near-term growth.

Buy now, pay later company, Sezzle (ASX:SZL) has opened its $7.2 million security purchase plan.

Westpac Banking Corporation (ASX:WBC) has been served with a class action law suit seeking damages related to the use of ‘flex commissions’ paid to auto dealers, which allegedly incentivised the dealers to set interest rates at higher levels for consumers.
 
Asian markets

The Asian markets are mixed. The Nikkei 225 index has lost 0.4 per cent. Hong Kong's Hang Seng has gained 0.2 per cent. China's Shanghai Composite has lost 0.6 per cent.

Wall Street 

Wrapped up our four trading days this week mixed: The Dow Jones added 2.5 per cent, The S&P 500 added 1 per cent and the tech heavy Nasdaq lost 1.4 per cent.

Best and worst performers

The best-performing sector at the close of trade was Materials, gaining 0.8 per cent. The worst-performing sector, and the only sector in the red, was Information Technology, shedding 0.1 per cent.

The best-performing stock on the S&P/ASX 200 was Abacus Property Group (ASX:ABP), closing 6.6 per cent higher at $2.76. It was followed by shares in Alumina (ASC:AWC) and South32 (ASX:S32).

The worst-performing stock on the S&P/ASX 200 was Avita Therapeutics, closing 4.8 per cent lower at $6.38. It was followed by shares in Flight Centre Travel Group (ASX:FLT) and Austal (ASX:ASB).

Commodities and the dollar

Gold is trading 0.1 per cent higher at US$1800 an ounce.
Iron ore is 0.6 per cent lower at US$111.62 a ton.
Iron ore futures are pointing to a fall of 0.4 per cent.
Light Crude is $0.05 lower at US$40.88 a barrel.
One Australian dollar is buying 69.86 US cents.