Metcash Limited (ASX:MTS) and Xero Limited (ASX:XRO) shares have been making a splash on the ASX 200 on Monday…
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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. The benchmark index is currently up 0.7% to 6,679 points.
Here’s what has been happening on the market today:
Metcash jumps on half year results release.
The Metcash Limited (ASX: MTS) share price is jumping higher following the release of a strong half year result. For the six months ended 31 October, Metcash reported a 12.2% increase in group revenue to $7.1 billion and a 43% lift in underlying profit after tax to $129.6 million. Food sales were up 9.5%, Liquor sales rose 14.3%, and Hardware sales jumped 20.6%. Pleasingly, this positive momentum has carried over into the second half.
Iron ore producers storm higher.
Iron ore producers including BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are charging higher on Monday after the price of the steel making ingredient surged higher again. According to CommSec, on Friday the spot iron ore price jumped a further 5.4% to US$145.30 a tonne. News that Vale has downgraded its production guidance and robust demand have given prices a boost.
Xero shares given buy rating.
The Xero Limited (ASX: XRO) share price is charging higher today after analysts at Goldman Sachs slapped a buy rating and $157.00 price target on its shares. Goldman believes the cloud-based business and accounting software provider’s total addressable market will increase significantly in the future. Combined with attractive unit economics, the broker believes the long-term earnings opportunity for Xero is material.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Monday has been the Metcash share price with a 9.5% gain following its half year results release. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 3.5% decline. This appears to be down to profit taking after strong gains over the last couple of months.
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- After record breaking ASX share price rallies, what next in 2021?
- Why Fortescue, Metcash, Nuix, & Xero shares are storming higher
- Metcash (ASX:MTS) share price jumps 8% after strong first half growth
- Why ASX iron ore stocks are set to rally today
- Leading broker puts buy rating on Xero (ASX:XRO) share price
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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