After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
While known for being the flagbearer for financial product providers, the Financial Services Council is now making serious inroads into the financial advice sector.
ASX closes at 4 week high, Kogan rebounds
Rally continues, tech, financials deliver, Kogan Inventory cools,
The S&P/ASX200 (ASX: XJO) continued Its strong recent run gaining another 0.5% on Wednesday behind the technology, financials and Industrial sectors which all finished around 1% higher.
The growing momentum behind city and bordering reopening’s is clearly boosting confidence despite the threat of staff shortages and the ‘great resignation’ that lies ahead.
Despite the positivity Flight Centre (ASX: FLT) was among the biggest detractors, falling 4.8% with investors not impressed by the weaker outlook.
Kogan (ASX: KGN) was on the other side of the ledge, gaining 6.7% after highlighting an improvement in the inventory issues that beleaguered the company in 2020.
Sales were over 20% higher year on year, however the increase in inventory saw gross profit decline 1.7% as price cuts were required.
Inventory has been reduced following the closure of overflow warehouses, down to $191 million from $227 million.
Active customers continue to grow, moving 30% higher to 3.35 million Australians.
Kogan First, aimed at the Amazon Prime style US customer, has seen its membership base nearly double, hitting 210k.
The company is showing positive signs of a turnaround after a difficult period.
Origin positive on electricity prices, Challenger jumps,
Shares in annuity and fund manager Challenger Financial (ASX: CGF) rallied by 3% after the company announced the sale of its non-core SMSF auditing platform Accurium to Count Plus.
However, the deal was for just $9 million hence is immaterial to the share price, with investors likely positioning in Challenger as a hedge against higher Interest rates.
BHP’s (ASX: BHP) battle with Twiggy Forrest continues, with the group increasing their bid for Canadian nickel explorer Noront Resources by $128 million as their pivot to green energy related commodities continues; shares were 0.5% higher.
Origin Energy (ASX: ORG) continued Its recent recovery with their AGM highlighting that gains in crude oil and LNG prices due to the global energy crisis have “brightened the profit outlook” for the group.
Whilst not an outright upgrade of August’s profit guidance, it is clearly moving in the right direction.
It’s not all easy going for pandemic winners, with Super Retail Group (ASX: SUL) highlighting the Impact of lockdowns and strong comparables on group sales, reporting a 12% fall in the first quarter compared to last year.
Naturally, online remains resilient, doubling and now hitting 30% of total sales for the owner of Rebel Sport, BCP and Supercheap Auto.
S&P 500 near record high, Netflix smashes expectations, PayPal eyes Pinterest
US markets closed near record highs capping the best winning streak since July, with the Dow Jones and S&P 500 both up 0.4%.
The technology sector continues to underperform with markets turning their attention to the third quarter reporting season from a number of big names.
Netflix (NYSE: NFXL) was the focus overnight after the company delivered an expectation beating result after a few slower than expected quarters.
The company reported 4.38 million new members in the quarter confirming that the end of lockdowns will not be the end of streaming.
It now sits at over 213 million subscribers with some 150 million having watched the Korean Squid Game series that is sweeping the world.
The result was a 16% jump in revenue and another recovery in margins, but importantly it showed new content was being delivered after a difficult period for all producers.
Shares in Pinterest (NYSE: PIN) led the Nasdaq, gaining 13% after the social media company was announced to be in late stage talks to be acquired by PayPal (NYSE: PYPL).
