Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

S&P/ASX 200 morning report – HVN, FPH & FBU shares in focus

The S&P/ASX 200 (ASX: XJO) is expected to edge lower when the market opens on Thursday, according to the latest SPI futures. Here’s what’s making headlines.

ASX’s 2020 losses evaporate

The ASX 200 weakened throughout the day, finishing 0.6% higher on Wednesday but has now overcome all losses sustained in 2020 and is on track for the best November in several decades.

The sustained recovery on the back of positive vaccine news reiterated the importance of remaining investors and not capitulating when faced with uncertainty. Those who sold in March have missed out on significant returns.

ASX 200 chart

Source: Rask Media 1-year XJO chart

Once again it was the financials and energy sectors benefitting most, with Origin Energy Ltd (ASX: ORG) adding another 4.3%.

Harvey Norman Holdings Limited (ASX: HVN) fell 2.6% after announcing a 160% increase in net profit on the back of a 28.2% increase in sales for the first four months of the year. The sell-off suggests investors are growing wary of the sustainability of the recent spike in spending, a sentiment I would agree with.

Markets are still digesting the massive stimulus programs announced in Victoria and New South Wales in recent weeks, with debt-funded infrastructure and housing support the story of the day, but seemingly little in the way of stimulus for those CBD-based companies most impacted.

Fisher & Paykel profit surging, Fletcher Building overcomes weakness

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has been one of the biggest winners from the pandemic, with its specialist respiratory support and ventilators seeing huge demand from hospitals around the world. So much so that management has warned investors not to expect the trend to continue.

Fisher & Paykel released its HY21 results, reporting an 86% increase in profit to $214.8 million for the six months to September on the back of a 59% increase in revenue – both were well above expectations. The result was driven by a near quadrupling in hardware sales to hospitals and resulted in a 33% increase in the final dividend, one of the few companies able to sustain this. FPH shares fell 2.2% on the news but the company remains a high-quality option for those seeking healthcare exposure.

Australian construction fell 2.6% in the September quarter, but this wasn’t enough to slow Fletcher Building Limited (ASX: FBU) down, management guiding to EBITDA of NZ$305 to NZ$320 million following a 1% increase in revenue in the first four months. The company announced its intention recommence dividend payments in early 2021 but in my view, there are alternatives with more targeted exposures to the infrastructure boom.

US economic data pushes markets lower

US markets will offer a weak lead to the ASX this morning, with a deluge of data resulting in mixed results. The Dow Jones and S&P 500 pulled back from recent highs, down 0.6% and 0.1%, respectively, with the work-from-home rotation back in swing as the likes of PayPal (NASDAQ: PYPL) and Zoom (NASDAQ: ZM) added around 4.0% each.

The key driver was weaker than expected economic data, which suggests the US recovery may be slowing despite the lack of any real economic shutdowns.

Claims for unemployment benefits increased for the first time since July, personal incomes similar to our own wage growth fell 0.7% and with the impending cancellation of pandemic stimulus cheques, the economy is on tenterhooks. This comes at the same time that the US trade deficit remains elevated sending more capital overseas. Thanksgiving Day is Thursday in the US with markets closed as a result.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.


Disclosure: At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Powered by

Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

Skip to content