Heavy declines in the banking sector are weighing on the S&P/ASX 200 Index (ASX: XJO) on Wednesday. In late morning trade the benchmark index is down 0.5% to 5,225.7 points.
Four shares that have not let that hold them back are listed below. Here's why they are charging higher:
The Austal Limited (ASX: ASB) share price has jumped 9% to $3.21. This follows the release of a business update which revealed that its operational and financial performance has been largely unaffected by COVID-19. As a result, Austal has maintained its FY 2020 EBIT guidance of no less than $110 million. The ship builder also advised that its unfranked 3 cents per share interim dividend will proceed as planned.
The ELMO Software Ltd (ASX: ELO) share price has stormed 5% higher to $6.09 following the release of a business update. During the third quarter of FY 2020 the cloud-based HR and payroll platform provider recorded cash receipts of $13.3 million, up an impressive 39.4% on the prior corresponding period. This brought its 12-month trailing cash receipts to $56.2 million, up 42.3% on the 12 months to March 2019.
The Treasury Wine Estates Ltd (ASX: TWE) share price is up 6.5% to $11.24 after announcing plans to demerge its Penfolds business. This follows a detailed review of its portfolio and an assessment of both the optimal strategy and structure of the business. Management believes a potential demerger would facilitate the creation of incremental long-term value for shareholders.
The Xero Limited (ASX: XRO) share price is up 3.5% to $73.46 despite there being no news out of the business and accounting platform provider. However, earlier this month Morgan Stanley put a buy rating and $80.00 price target on its shares. It believes it is winning market share globally and sees recent share price weakness as a buying opportunity.
