Insights

ASX 200 drops on Friday

The S&P/ASX 200 Index (ASX:XJO) dropped on Friday after being dragged down by CSL Limited (ASX:CSL) on COVID-19 vaccine news.
The post ASX 200 drops on Friday appeared first on The Motley Fool Australia. –

ASX 200

The S&P/ASX 200 Index (ASX: XJO) fell by 0.6% to 6,643 points.

Here are some of the highlights from the ASX today:

CSL Limited (ASX: CSL)

The CSL share price fell more than 3% after the healthcare giant decided to abandon the phase 2 and phase 3 trial of the University of Queensland (UQ) COVID-19 vaccine.

CSL said that the COVID-19 vaccine from UQ elicits a robust response towards the virus and has a strong safety profile. There were no serious adverse events or safety concerns reported in the 216 trial participants.

However, the phase 1 trial data showed the generation of antibodies directed towards the molecular clamp component of the vaccine, which interfere with HIV diagnostic assays (tests). The potential for this cross-reaction had been anticipated before the commencement of the trial. Participants were fully informed prior to their involvement so that this could occur.

Blood samples from study participants were tested after vaccination and it was found that these molecular clamp antibodies did cause a false positive of a range of HIV assays. Follow-up tests confirmed that there is no HIV virus present. CSL stated that there is no possibility the vaccine causes infection.

With advice from experts, CSL and UQ have worked through the implications that this issue presents to rolling out the vaccine into broad populations. It is generally agreed that significant changes would need to be made to well-established HIV testing procedures to accommodate rollout of this vaccine. Therefore, CSL and the Australian Government have agreed that vaccine development will not proceed to phase 2 or phase 3 trials.

Afterpay Ltd (ASX: APT)

The Afterpay share price went up around 5% after investors learned the ASX 200 buy now, pay later (BNPL) business had won over some new retailers in Canada.

According to reporting by media, Afterpay has partnered with fashion and beauty retailers SHEIN, Rains, Triarchy and Clarins.

Melissa Davis, head of North America for Afterpay said: “Afterpay is growing rapidly in Canada, especially among Millennial and Gen Z consumers, because our service helps young shoppers budget their own money and pay over time. In doing so, our retail partners benefit by attracting new, highly engaged young consumers – helping them increase sales, basket sizes and conversion during the most important retail season of the year.”

It was also reported that last month Afterpay launched cross border shopping, providing its Canadian retailers access to its international network of young and engaged shoppers.

Eagers Automotive Ltd (ASX: APE)

ASX 200 car dealership business Eagers announced an update today. It said that for the year ending 31 December 2020, it’s expecting to deliver an underlying operating profit before tax from continuing operations in the range of $195 million to $205 million for 2020, compared to $100.4 million. This guidance reflects the full year of trading for the enlarged company after its merger with Automotive Holdings Group.

The company said that vehicle sales have continued to rebound strongly from the historical lows experienced during April and May 2020. Customer orders have continued on their strong trajectory and supply constraints caused by global manufacturer factory closures during the June quarter have started to ease as shown by the 12% increase in national vehicle deliveries recorded during November by VFACTS.

Management said that the industry’s tight inventory position, along with its cost reduction initiatives that have been implemented, have helped the strong underlying trading performance.

The Eagers share price went up 3%. 

Zip Co Ltd (ASX: ZIP)

BNPL business Zip announced today that it was partnering with Facebook to help small and medium sized Australian businesses to use Zip Business to pay for advertising on the social platform.

Currently in the testing phase, the service will enable small businesses advertising on the platform to reach online shoppers without impacting their cashflow.

The Zip share price finished the day higher by around 2%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 drops on Friday appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!