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.
Mining titans weigh ASX to 0.5% loss
Reality bites, Oil Search gets a bid, AUD hits seven month low
Defensive earnings remained sought after on Tuesday with the healthcare sector outperforming once again, adding 1% behind CSL Limited (ASX: CSL) which finished 1.3% higher.
Growing global outbreaks of the Delta strain have shaken markets but the ASX 200 (ASX: XJO) was able to overcome an initial fall of over 1.2% to finish just 0.5% lower.
Energy and materials were once again the hardest hit with both falling over 1%, albeit with mixed results between companies.
Oil Search Ltd (ASX: OSH) gained 6.3% after revealing the worst-kept secret that Santos Ltd (ASX: STO) had made an offer to merge with the company.
The offer valued OSH at around $4.25 per share with existing shareholders to own 37% of the combined entity. Management welcomed the offer but suggested it didn’t quite represent fair value.
We suggest traders keep an eye on this one, however, Australian commodity companies don’t have a great track record in mergers.
Sticking with mining, BHP Group Ltd (ASX: BHP) fell 2.5% despite reporting record exports and quarterly production of 72.8 million tonnes of iron ore.
This represents 9% growth on the previous quarter, the reverse of key competitor Rio Tinto, with management confirming unit cost forecasts of US$13-14 per tonne remains on target.
Online sales boom for JBH, Ramsay’s offer rejected, Hub 24 delivers record inflows
Electronics and white goods retailer JB Hi-Fi Limited (ASX: JBH) jumped 3.7% after announcing a 68% increase in financial year profit to $506 million.
Management reported ‘strong sales momentum’ with revenue up 12.6% to $8.9 billion for the year and earnings increased 54% to $743 million.
Interestingly, online sales jumped 78% but remain at just 12% of total sales despite the pandemic, suggesting more margin improvement and growth may still be possible.
Counsel for the Royal Commission into Crown Resorts Ltd (ASX: CWN) predictably recommended their license be withdrawn once again sending the share price lower, down 2.6%.
The real advice comes in a month’s time when the recommendation is handed down.
Investment platform Hub24 Ltd (ASX: HUB) continued its recent record run, adding another $3.9 billion in quarterly inflows, taking assets under administration to $41.4 billion, supported by a number of recent acquisitions. HUB shares fell 2.4% on the news.
Ramsay Health Care Limited (ASX: RHC) had been rebutted on its takeover offer for Spire Healthcare in the UK, with shareholders rejecting the $3.9 billion bid despite both board and major shareholder support.
Buy the dip, US markets rally, Netflix misses, housing starts jump
The time-tested strategy of ‘buying the dip’ has paid off once again for day traders with US markets staging a strong recovery, the Dow Jones up 1.5% and both the S&P 500 and Nasdaq moving 1.6% higher overnight.
The strength comes despite growing warnings of the pandemic worsening as global cases numbers and deaths begin to increase once again.
The smaller companies Russell 2000 index was a key beneficiary, jumping 3%, as housing starts were confirmed to have jumped 6.3% in June.
Everything from cruise liner Carnival Corp (NYSE: CCL) airlines, including United Airlines Holdings Inc (NYSE: UAL), were both up over 6%.
Netflix Inc (NYSE: NFLX) on the other hand missed expectations in the fourth quarter, adding just 1.75 million subscribers, well below the 1.54 million expected.
Revenue was slightly ahead of expectations, US$7.34 billion, with price increases a key contributor; NFLX shares will fall on the miss.
