The Wesfarmers Ltd (ASX: WES) share price is charging higher on Wednesday with the rest of the S&P/ASX 200 Index (ASX: XJO).
In morning trade the conglomerate's shares jumped as much as 9% higher to $34.53.
Why is the Wesfarmers share price racing higher?
Investors have been buying the company's shares this morning following the release of a COVID-19 update.
According to the release, the company's Australian operations remain open for business and are operating under standard or near-standard trading hours. This includes its Bunnings, Kmart, Target and Officeworks stores.
The same applies to its industrial businesses which have thus far not been impacted by recent government measures.
Management advised that all its businesses are focusing on ensuring continued availability of products and services in a manner that minimises risks to team members and customers. This includes through online channels for its retail businesses.
New Zealand update.
Things are not quite as simple for its New Zealand operations, though.
This follows news that the New Zealand Government has announced measures to restrict the operation of nonessential services from midnight on March 25 for a period of four weeks.
During this period the company's 25 Kmart New Zealand stores will be closed. However, reflecting the essential nature of its products, Bunnings' 53 locations in New Zealand will remain open to trade customers only. The general public will not be able to enter the stores.
Finally, as the company's Industrial and Safety businesses in New Zealand provide a number of essential products, it is working with the New Zealand Government to confirm that operations can continue.
In respect to the impact this will have on employees, suppliers, and customers, Wesfarmers said: "Wesfarmers recognises the impact these changes will have on team members, suppliers and customers that rely on our businesses for their livelihood and wellbeing. Wesfarmers and its divisions, will endeavour to support team members through this difficult time and work with the relevant authorities on strategies to reduce the risks of COVID-19 and recommence operations as soon as deemed appropriate."
Wesfarmers Managing Director Rob Scott commented: "We remain focused on operating our businesses in a manner that protects the health and safety of our teams and customers, while also supporting government and the broader community to limit the spread of COVID-19."
Dividend update.
Thanks to the strength of the Wesfarmers balance sheet, the company has confirmed that it will pay its previously declared fully franked interim dividend.
Eligible shareholders can look forward to receiving the 75 cents per share pay out on March 31.
