Investment Matters

Company news: Viva Energy and Healius

Australian Equities sub-portfolio

Viva Energy gave an update to the market this week. It was a noticeable out performer – with its shares rising by more than 12% this week. Viva has been less impacted by COVID-19 than expected, with a decline in fuel volumes offset by strong margins. We held a view that the market had overly discounted the stock due to this uncertainty and continue to see upside in the company as its refining margins improve.

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Healius announced that it has entered an agreement to sell its Medical Centres business. The market reacted positively to this, with its share price rising by 19% over the week. Healius has been a strong performer over the COVID-19 period, providing an exposure to the defensive Healthcare sector. The sale will put the company in a stronger financial position and will allow it to focus on its core imaging and pathology businesses.