Daily FNArena News - Australia

Business loan growth at National Australia Bank is likely over coming months but of greater concern to brokers is the potential for a surge in bad debts.

NAB has set the agenda, but most analysts suggest pain will be temporary and the bank sector remains strong.

Having withdrawn guidance in March, Steadfast Group has moved to reassure investors that earnings momentum is sound.

Carsales.com has experienced better trajectory in volumes since Easter, signalling to brokers that business may be more resilient than initially expected.

A2 Milk has been a beneficiary of the pandemic restrictions, with strong sales in online and re-seller channels, but will the effect of stockpiling subsequently unwind – and sharply?

BHP Group retains a reasonably robust outlook for its key commodities, despite restrictions, as some development projects are deferred or delayed to shore up capital in the event conditions deteriorate.

Nearmap has implemented savings initiatives, anticipating positive cash flow by June, despite being deemed an essential service and unaffected to date by the pandemic.

There are some positive stories emanating from Perpetual’s initiatives but one broker questions whether the dividend may still need to be cut.

South32 is making a considerable effort to protect its balance sheet as its commodity spectrum comes under pressure from virus-related restrictions.

Sandfire Resources has erred on the cautious side, withdrawing production guidance while development projects are likely to be delayed.