Opening up early access to super for housing would have a negative effect on the balances of even those members that don’t dig into their savings, with funds forced to adopt more conservative investment strategies and hold more liquid assets.
The circa $88 billion industry fund for workers in health and community services reckons that alleviating the affordable housing crisis will boost its other investments by easing the cost of living and inflation.
Heavyweights outperform to lift ASX
ASX hits four day high, gold shining again, growth bubble stalling
The ASX200 hit a four-day high, finishing 0.6% to the positive on Tuesday; showing the short-term focus of the market at the moment.
The energy and materials sectors were the biggest contributors, jumping by 1.6% each.
For energy, it was the case of oil prices hitting another medium-term higher overnight, sending the likes of Woodside Petroleum (ASX:WPL) 2.1% higher.
This came despite the company effectively writing off its large investment in the Kitimat LNG in Canada, costing US$60 million just to exit the asset.
Gold bullion has been the story of the week, moving closer to US$1,900 per ounce as both inflation concerns and volatility increase, Evolution (ASX:EVN) finished 4.9% higher.
As has been proven time and again in the commodities sector, a rising price does guarantee strong returns.
But this wasn’t enough to save fellow ASX miner Santa Barbara Ltd (ASX: SBM), which fell 9.0% after downgrading production guidance and flagging higher costs per ounce than expected.
2020’s popular tech names including Redbubble (ASX:RBL), down 4.2%, and Kogan (ASX:KGN) continue to struggle to keep up with growth expectations.
James Hardie set to resume dividends, Nuix says sorry
Building products supplier James Hardie (ASX:JHX) fell 4.5% after warning that inflation pressures are beginning to build in their supply chain.
As highlighted in this column, these are self-inflicted by a business sector that cut orders and inventory during the pandemic and is now seeking to ramp up quicker than what is possible.
The company cited cost pressures in their pulp, pallet, and freight costs which are expected to be a US$150 million headwind to profit.
It did report a 9% increase in profit for the half, to US$262.8 million on the back of a 12% increase in sales to US$2.9 billion.
In a positive move, dividends are set to resume in November after being on hold since the pandemic.
Improvement is being made at what could be the worst IPO in recent memory, Nuix Ltd (ASX:NXL), which jumped 11.5% today.
Talking to investors, both the Chair and CEO said sorry, taking responsibility for the fact that the company may not have been prepared for ASX-listed life. They committed to improving governance and transparency in their pursuit of a share price recovery.
Global markets continue to slide, Walmart’s upbeat forecasts, oil falls
US markets fell across the board on Tuesday, the Dow Jones and S&P500 leading the market lower, both falling 0.8% as housing figures and oil prices dragged down the consumer and energy sectors.
On the one hand, it was talk of a new US-Iran Nuclear deal suggesting the supply of oil would improve, meanwhile there was a 9.5% month-on-month fall in housing starts in April. The economy is clearly looking more mixed than headlines results suggest.
Walmart (NYSE:WMT) finished 2.2% higher after upgrading guidance for the remainder of the financial year, as early sales showed a continued recovery.
Comparable sales increased 6% in the quarter, excluding fuel, and up 16% when compared over the last two years rather than just the COVID-19 impacted comparables. Online sales were 37% higher, suggesting the transition to digital is continuing to pay off.
Despite upgrading guidance, management flagged higher wage costs and inventory issues as threats to the recovery along with the need to keep winning new customers.
