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(but still make lots of money)?

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ASX 200 share market recap – Z1P, JBH & NEA shares in focus

The S&P/ASX 200 (INDEXASX: XJO) is set to open higher on Tuesday according to the latest SPI futures. Here’s what ASX investors need to know.

JB Hi-Fi announces dividend bonanza, Zip share price hits all-time high

The ASX 200 started the week on a strong footing, jumping 0.9% on Monday with all but the interest rate sensitive sectors of property and utilities heading higher.

Whilst ASX reporting season is in focus, Zip Co Ltd (ASX: Z1P) was by far the biggest highlight, adding 16.9%, sending the market cap over $6 billion as investors seemingly move away from Afterpay Ltd (ASX: APT) into one of its main competitors in the US.

In terms of reporting season, JB Hi-Fi Limited (ASX: JBH) delivered a significant dividend increase, up 81.8% to $1.80 per share, after a bumper six months of retail sales. According to the report, total sales increased 23.7% in the first half to $4.9 billion, driven by a 161.7% increase in online sales which now represent 13.7% of total sales. A unique click-and-collect system is allowing JB Hi-Fi to benefit from efficiencies of scale with net profit improving 86.2% to $317.7 million, with sales growth broad-based across both consumer electronics and white goods via the Good Guys business, which saw a 26.4% increase in sales growth, now $1.45 billion or 30% of total sales.

JB Hi-Fi management refused to offer guidance given the Melbourne lockdown, but highlighted a slight ‘slowdown’ in sales in January, printing at 17.4% above 2020 levels. A solid result on all levels, with the JB Hi-Fi share price up 3.0% on the news, but questions remain about how long elevated sales can remain post a vaccine rollout.

Featured video: Australian Finance Podcast ft. Morgan Housel

Altium share price tumbles, Nearmap slaps down short seller

Coca-Cola Amatil Ltd (ASX: CCL) finally received an increased takeover offer from Coca-Cola European Partners (CCEP), taking the deal from $12.75 to $13.50. Not insignificant but likely not what investors had been expecting. CCEP is clearly seeking to keep the price low in the hope of extracting efficiencies from this mature, slow-growing sector.

The Altium Limited (ASX: ALU) share price fell 4.8% after reporting a 12% fall in profit and rare contraction in revenue by 4%. The design company highlighted its ‘pivot to the cloud’ and difficult pandemic conditions for the rare revenue miss, but with profit of just US$16.6 million, there isn’t much room for missteps.

Aerial imaging company Nearmap Ltd (ASX: NEA) slapped down the short-selling report released by JCapital last week, the share price jumping 19.0% after management disproved each of the ‘researchers’ assertions. The company reported record annualised contract revenue in the US region, being the annual amount of the most recent monthly recurring sales, which hit US$35.1 million, while the group net loss was halved from $18.6 million to $9.4 million. Nearmap’s key customer groups showed significant strength with insurance contracts up 43%, government, 53%, and roofing companies 198%.

US markets closed, Nikkei hits 30,000 points

With US markets closed for President’s Day, all eyes were on Japan, where the Nikkei 225 index finally touched 30,000 points again. The last time the market was at this level was in 1990, thirty short years ago.

Japan offers an interesting insight into the potential implications of near-zero interest rates and an environment of deflation, which many suggest the rest of the world may be facing in the coming years. Have markets moved ahead of themselves? Is there a risk that we are currently seeing a 10, 20 or 30-year high in US or Australian markets?

On the positive side, many Japanese companies have delivered strong returns in the same period that the Nikkei took to recover previous highs, suggesting active management, rather than index investment may be the best course of action.

Back home on the ASX, expect reports from the likes of National Australia Bank Ltd (ASX: NAB), BHP Group Ltd (ASX: BHP) and Redbubble Ltd (ASX: RBL) today as per Rask Media’s ASX reporting season calendar.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

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From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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Disclosure: At the time of publishing, Drew owns shares in Zip Co.

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