While financials and materials dominated trades leading into 2024, the popularity of other sectors like healthcare and information technology followed generational, and even demographic, lines.
The representative working group is lobbying the government for a broader section of study to be eligible for credit within the ‘equivalent degree’ requirement for advisers in the hope that more people will be encouraged to join the profession.
Market (ASX:XAO) weakens on RBA minutes, property, industrials under perform, Ansell sinks on input costs
Mixed messages from bond markets and the Reserve Bank sent both the All Ordinaries (ASX:XAO) and S&P/ASX200 (ASX:XJO) finishing 0.2 per cent lower. The property and industrial sectors sank by 1.6 and 1.2 per cent respectively after the release of the latest round of RBA minutes that suggested further rate hikes were likely despite clear signs of slowing inflation. Consumer sentiment also remains weak, remaining below the key 80 rating level for the last 20 weeks. The most significant detractor from the market was glovemaker Ansell (ASX:ANN) with the blue chip company falling 14 per cent on an earnings downgrade. Management is now expecting a lower profit result, in the middle of its guidance range, due to higher input costs for its key products and increasing interest expenses. The company also warned of layoffs in its manufacturing business and a headline in the form of the stronger USD.
Platform flows slow, NRW jumps on upgrade, Aurizon underwhelms
Mining services business NRW (ASX:NHW) was the top performer, adding 5.1 per cent despite offering little in the way of news to the market, while graphite producer Syrah (ASX:SYR) fell by more than 16 per cent on a weaker than expected production update. Super fund platforms Praemium (ASX:PPS) and Hub 24 (ASX:HUB) both weakened, by 1.7 and 0.9 per cent respectively, as inflows remained positive but slowed for the financial year. Praemium delivered $1.4 billion, taking total assets to $44 billion, while Hub reported $2.1 billion, a 14 per cent reduction on the prior year. The latter blamed rising interest rates and weaker economic conditions along with the increasing attractiveness of term deposits for the slowdown. Coal rail operator Aurizon (ASX:AZJ) shares fell by 5 per cent after the company tightened earnings guidance to between $1.42 and $1.47 billion. Management believe strong container flows will continue to support the business, as long as the economy remains resilient.
Dow books longest winning streak, Microsoft jumps on pricing, Morgan Stanley outperforms
The Dow Jones booked its longest winning streak since 2021, buoyed by a 4 per cent rally in Microsoft (NYSE:MSFT) with the S&P500 and Nasdaq both gaining 0.7 per cent. The driver was a report that Microsoft was set to charge as much as US$30 per user per month for its AI-powered Copilot system. The banking sector continues to outperform expectations, raising hope that the rally could be sustained by strong profit growth. Morgan Stanley (NYSE:MS) reported a 14 per cent fall in profit to US$2 billion for the quarter, with a solid increase in revenue on the back of higher rates benefitting the group. Australian CEO James Gorman highlighted the fact that the company is prepared for multiple economic outcomes, with wealth management a standout adding US$1 billion in profit. It was a similar story for Bank of America (NYSE:BOA) as profit increased by more than 15 per cent on the back of a surge in new customer accounts and credit cards.
