ASX 200 drops 1.5% today, Afterpay falls 3%

The S&P/ASX 200 Index (ASX:XJO) fell 1.5% today on lockdown worries. The Afterpay Ltd (ASX:APT) share price dropped 3%.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) fell by just over 1.5% today with Melbourne entering into a lockdown again today.

Australia's second largest city faces a lockdown of six weeks to halt the spread of COVID-19 in Victoria.

Northern Star Resources Ltd (ASX: NST) impresses the market

The top performer within the ASX 200 today was Northern Star, its share price rose by 6.5% after delivering its June 2020 update.

Within the update the gold miner said that its cash, bullion and investments rose by 40% to A$769.5 million at 30 June 2020 compared to A$551.4 at 31 March 2020. This meant the company finished with a net cash position. It had corporate bank debt of $700 million at 30 June 2020. It repaid $200 million of that debt on 6 July 2020.

Northern Star stated that it generated underlying free cashflow of $217.9 million in the three months to June 2020 after selling 262,717 ounces of gold. This took the total sales for the 2020 financial year to 900,388 ounces, while gold produced totalled 905,177 ounces. This was 1.6% lower than the low end of the FY20 guidance.

In light of the "solid result", Northern Star said it will pay its FY20 fully franked interim dividend of 7.5 cents per share on 16 July 2020. The payment of this dividend, which totals A$55 million, was postponed when the ASX 200 gold miner withdrew its FY20 guidance a few months ago.

The company expects to resume dividend payments in the ordinary course of business.

Afterpay Ltd (ASX: APT) completes its $650 million institutional capital raising

The buy now, pay later business said that it had successfully raised the target amount of $650 million from institutional investors. The placement was priced at $66 per share.

Afterpay said the capital raising was strongly supported by existing and new shareholders. Co-founders Anthony Eisen and Nicholas Molnar managed to each sell 2.05 million shares at the placement price of $66 per share. They have committed not to sell any other shares until after the 2020 annual general meeting (AGM).

Afterpay director Elana Rubin said: "The market has responded strongly to our aspiration to further accelerate our investment in growing underlying sales and expanding our global footprint, with the placement being oversubscribed. We are very pleased with the support we have received from our existing shareholders and we welcome our new investors to the register."

Regular retail investors will soon be able to buy up to $20,000 worth of the ASX 200 share at the lower price of $66 and the 5-day value weighted average price of Afterpay shares up to the share purchase plan (SPP) closing date.

Splitit Ltd (ASX: SPT) share price jumps 8%

The rapidly-rising buy now, pay later business released its quarterly update today.

Splitit's merchant sales volume grew 260% to US$65.4 million in the three months to 30 June 2020 compared to the prior corresponding period. This was a 176% increase on the previous quarter.

The company's non-GAAP revenue rose 460% to US$2.4 million for the quarter, it represented a 246% rise on the first quarter of 2020.

Total merchants rose 104% over the past 12 months to 1,000 merchants. Total unique shoppers jumped 85% to 309,000.

Splitit's average order value increased by 44% (compared to the prior corresponding period) to US$893.

Some of the large new merchants that are now live and signed include Purple, Daily Sale, Quiet Kat, Dreamcloud, Bedmart, Scorptec, Tatami Fightwear, Sofa Club and Alpina Watches.

New Splitit partnerships have been made with Mastercard, Finance for Group and Blue Snap.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A susccesful person kicks back and relaxes on a comfy chair
Best Shares

If I could only buy and hold a single ASX share forever, it would be this one

There are two reasons why this stock is my first choice...

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Opinions

Brokers' verdict on 4 popular ASX 200 financial stocks

Financials outperformed every other sector in FY25. What should you do now with these 4 stocks?

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Share Gainers

Why Bapcor, Ramelius, Sandfire, and WIA Gold shares are rising today

These shares are having a better day than most on Tuesday. But why?

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Is it too late to invest in the record setting S&P 500 stock gains?

A top broker reveals what to expect next from the surging S&P 500 Index.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Boss Energy, DroneShield, Greatland, and Viva Energy shares are tumbling today

Let's see why these shares are out of favour with investors on Tuesday.

Read more »

Man smiling at a laptop because of a rising share price.
Broker Notes

4 ASX shares to buy this week: experts

Looking for investment inspiration?

Read more »

Miner and company person analysing results of a mining company.
Energy Shares

Should you buy Boss Energy shares now after Monday's huge sell-off?

Macquarie gives its verdict on Boss Energy shares following Monday’s crash.

Read more »

Excited couple celebrating success while looking at smartphone.
Broker Notes

Macquarie forecasts 28% upside for this ASX All Ords stock

Let's see why the broker is feeling bullish about this name.

Read more »