Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Mining heavyweights, gold diggers power index
There was not much change in the major share market indices on Monday, but they did end in the green; the benchmark S&P/ASX 200 index regained a small loss in the morning to close up 10.4 points, or 0.1 per cent, at 7267.1 points; while the broader All Ordinaries index gained 7.3 points, or 0.1 per cent, to 7,460.5.
The mining heavyweights were positive, with BHP adding 37 cents, or 0.9 per cent, to $43.85; Rio Tinto up $1, also 0.9 per cent, to $108.96; and Fortescue Metals gaining 28 cents, or 1.4 per cent, to $20.38.
Australia’s largest gold producer, Newcrest, surged 43 cents, or 1.5 per cent, to $28.68, as its board said it plans to accept Newmont Mining’s $26.2 billion takeover bid. Elsewhere in gold, Silver Lake Resources, advanced 7.9 cents, or 7.9 per cent, to $1.095; Evolution Mining gained 15.9 cents, or 4.2 per cent, to $3.94; De Grey Mining added 5 cents, or 3.5 per cent, to $1.49; Northern Star improved 39 cents, or 2.9 per cent, to $13.97; and Bellevue Gold rose 4 cents, or 3.1 per cent, to $1.34.
In coal, Whitehaven Coal slid 5 cents to $6.89; New Hope Corporation also gave back 5 cents, to $5.13; and Bowen Coking Coal lost one cent, or 4.6 per cent, to 21 cents; but Stanmore Resources added 3 cents, or 1 per cent, to $3.01.
In lithium, producer Allkem walked back 29 cents, or 1.9 per cent, to $14.85; fellow producer Pilbara Minerals fell 5 cents, or 1 per cent, to $4.73; IGO, which mines nickel and lithium, lost 8 cents, or 0.5 per cent, to $14.67; and Mineral Resources, which produces iron ore as well as lithium, retreated 27 cents, or 0.4 per cent, to $73.75.
Among the project developers, Liontown Resources slipped 4 cents, or 1.4 per cent, to $2.93, and Lake Resources gave up 3 cents, or 4.6 per cent, to 62 cents. Rare earths producer Lynas shed 9 cents, or 1 per cent, to $7.31.
In energy, Woodside Energy advanced 26 cents, or 0.8 per cent, to $33.92; Santos gained 5 cents, or 0.7 per cent, to $7.17; and Brazilian-based producer Karoon Energy put on 3.5 cents, or 1.8 per cent, to $2.03.
InvoCare shows there’s money in death
On the industrial screens, funeral homes operator InvoCare said it received an improved $1.9 billion takeover bid from private equity group TPG Capital at $13 a share; in response, the shares surged $1.34, or 12.1 per cent, to $12.43. InvoCare was the best-performing stock in the S&P/ASX 200.
Among the major banks, Westpac added 4 cents to $21.13 and National Australia Bank increased 5 cents to $26.46; but ANZ retreated 16 cents, or 0.7 per cent, to $23.53, as it traded ex-dividend, and Commonwealth Bank lost 46 cents, or 0.5 per cent, to $98.50. Global investment bank and wealth manager Macquarie Group added 26 cents, or 0.2 per cent, to $174.84.
Shares in agricultural supplies business Elders sank $1.10, or 13.3 per cent, to close at $7.20 after its net profit plunged 42 per cent to $48.8 million in the six months ended March 31; and the company cut its interim dividend by five cents, to 23 cents. The sector also saw beef producer Australian Agricultural Company lose 7.5 cents, or 5 per cent, to hit a 52-week closing low of $1.445; and grain exporter Graincorp give up 19 cents, or 2.3 per cent, to $8.08.
Gaming machine maker Aristocrat Leisure closed up 82 cents, or 2.1 per cent, to $39.51, after agreeing to buy global digital lottery platform NeoGames for US$1.2 billion ($1.8 billion). Chief executive Trevor Croker said the deal will accelerate the company’s growth in the $US81 billion ($122 billion) online casinos, lotteries, and sports betting sectors.
US markets back in the black
In the US overnight, the major indices rose on Monday as traders assessed ongoing debt ceiling negotiations. The broad S&P 500 added 12.2 points, or 0.3 per cent to 4,136.28; the blue-chip Dow Jones Industrial Average broke a five-day losing streak, gaining 47.98 points, or 0.1 per cent, to 33,348.6; and the tech-heavy Nasdaq Composite Index advanced 80.47 points, or 0.7 per cent, to 12,365.21.
In the bond market, the US 10-year Treasury bond yield gained 3.9 basis points, to 3.507 per cent, while the more policy-sensitive 2-year yield moved back above 4 per cent, adding 0.9 of a basis point, to 4.004 per cent.
Gold is up US$5.00, or 0.2 per cent, to US$2,016.38 an ounce; the global benchmark Brent crude oil grade rose US$1.41, or 1.9 per cent, to US$75.58 a barrel; and US West Texas Intermediate crude gained US$1.07, or 1.5 per cent, to US$71.11 a barrel.
The Australian dollar is buying 67.01 US cents this morning, up from 66.82 US cents at the local close on Monday.
