Citing signals of economic transition and diversified benefits, Amundi recommends a significant portfolio allocation to gold following its +30 per cent surge since 2023. Investor Strategy News
Australia’s biggest super funds disagree on what the new Your Future, Your Super performance test should look like, but they both think the consequences for failure should be just as weighty – and apply to everybody equally.
Market recovers during the day, Douglass takes leave, Graincorp upgrade
The S&P/ASX200 managed a solid fightback during the session falling as much as 1% at the open but finishing down just 0.1% for the day.
There were only three sectors higher, being energy, materials and technology gaining 1.6, 0.8 and 0.6% respectively, whilst the healthcare and real estate sectors both fell 1.3%.
Among the largest drags on the market, today was ANZ Banking Group (ASX: ANZ) which fell 1.9% after announcing a further 8 basis point reduction in their net interest margin.
In positive news, their loan processing has caught up with their competitors and provisions remain low.
Fund manager Magellan (ASX: MFG) fell another 11% after the unexpected news that CIO and Portfolio Manager Hamish Douglass had taken an indefinite medical leave of absence from his role.
His co-founder Chris Mackay will take over portfolio management duties, but the market is clearly concerned about how long he will be out of the role.
Assets under management fell by $2 billion in January, the majority of which was driven by the broad sell-off in global sharemarkets.
Graincorp, travel stocks surge, James Hardie upgrades
Shares in Graincorp (ASX: GNC) topped the market after reporting a second consecutive ‘bumper crop’ with shares gaining 12.3%.
The strong season will see earnings finish the financial year between $480 and $540 million a significant improvement on the $331 million reported in the prior year. Net profit is expected to double from $139 million to $280 million in FY22.
The travel sectors surged after the Prime Minister announced that the country would be welcoming tourists from 21 February 2022 after more than two years of lockdowns.
Those companies who have managed to survive should be ready for a bumper year, with Flight Centre (ASX: FLT) and Corporate Travel (ASX: CTD) gaining 7.8 and 7% respectively on the news.
James Hardie (ASX: JHX) has moved on from the recent leadership issues forecast a stronger than expected 2022 financial year.
The booming residential construction market here and in the US and price increases have contributed to potential US$620 to $630 million results, up from US$580 to $600 million forecasts last year. Shares gained 2% on the news.
US markets flat ahead of inflation data, Peloton jumps, airlines to combine
Markets have moved back into a narrow range trading band, with all three benchmarks falling on Monday on the back of a good day for semiconductor and energy stocks.
The Dow Jones naturally outperformed, finishing flat with the S&P500 and Nasdaq down 0.4 and 0.6% respectively.
Embattled exercise equipment distributor Peloton (NYSE: PTON) gained more than 20% after announcing they were considering takeover offers in light of the significant fall in the price of shares; Amazon is a rumoured buyer.
Low-cost airlines Frontier (NYSE: ULCC) and Spirit (NYSE: SAVE) gained 3 and 17% respectively after agreeing on a US$6 billion merger proposal ahead of a takeover in consumer travel.
Earnings season steps up another gear this week with Walt Disney and Pfizer ahead whilst more inflation data is due Friday following last week’s strong jobs report. In other news, the ECB has joined the central bank party announcing they would consider a rate hike as the end of 2022 near.
