Craig Brooke from KeyInvest speaks to James Dunn from The Inside Network for our IN60 videos. The Inside Adviser
David Chan from MLC shares insights with Laurence Parker-Brown from The Inside Network on how access to the larger pool of secondaries in PE helps diversification. The Inside Adviser
Market falls on Amcor downgrade, despite upbeat retail sales, AV Jennings revenue slumps
The sentiment has once again turned negative in Australia as a series of mixed messages are shared with the market. The S&P/ASX200 finished 0.9 per cent lower on Wednesday, dragged down by the energy sector, which fell 2.1 per cent on the back of a near 5 per cent fall in oil prices overnight. Among the rare highlights were the staples and telecommunication sectors, which were flat and 0.3 per cent higher as investors flocked to safe haven assets. Amcor (ASX:AMC) which produces packaging for multiple sectors, fell by nearly 10 per cent after the company delivered a shock earnings downgrade, of around 5 to 6 per cent. Management cited a weaker mix of product sales driven by consumers trading down to lower cost products, and further input inflation related to energy and other costs. The company managed to increase sales by 1 per cent despite the challenges.
JB HiFi sales growth slows, shares jump, BWX spin out continues, Hub 24 expands
Investment and superannuation platform provider Hub 24 (ASX:HUB) fell by more than 2 per cent after the company announced the acquisition of My Prosperity for $40 million. The purchase marks a step into the customer relationship management sector as the company seeks to further diversify its revenue base. Collapsed skincare group BWX confirmed the sale of its digital business to New Zealand competitor HealthPost, with the Go-To and Sukin brands still remaining with the non-trading company. Property developer AV Jennings (ASX:AVJ) gained 3.3 per cent even though the company reported a 50 per cent fall in third quarter property sales as higher interest rate hit funding capacity and demand for housing. The result was $30 million from 102 lots, reflecting a 17 per cent decline. Retailer JB HiFi (ASX:JBH) bucked the trend with the company reported sales had increased 0.8 per cent, but growth continues to slow in Australia compared to recent years, as reflected by the retail sales result which saw spending shift from clothing to restaurants and cafes.
Fed hikes 25 basis points, markets fall, AMD shares sink, Kraft jumps
The Federal Reserve followed the Reserve Bank of Australia by raising interest rates by another 25 basis points overnight taking the US cash rate to over 5 per cent. The news sent all three benchmarks lower, led by the Dow Jones, which fell 0.8 per cent, followed by the S&P500 which fell 0.7 and the Nasdaq 0.5 per cent. Importantly, rate hikes now appear to have finished, with the board removing comments around ‘further firming’ from its commentary. The energy sector was hit by a further fall in oil prices on recession concerns, with oil falling below US$70 per barrel. Earnings season continued with Kraft-Heinz (NYSE:KHC) gaining more thn 2 per cent after the company reported a more than 10 per cent jump in profit on the back of a 14 per cent increase in prices that was enough to offset a 5 per cent fall in volumes of their staples products. Semiconductor firm Advanced Micro Devices (NYSE:AMD) fell close to 10 per cent after the company key sales forecasts on hold and confirmed it continues to take market share from Intel in the data centre side of its business amid the growing emergence of AI platforms. The challenge remains in margins, with PC sales continuing to remain weak.
