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ASX 200 morning report – ANZ, NEA & QBE shares in focus

The S&P/ASX 200 (ASX: XJO) reached a 14-month high on Wednesday, adding 0.4% and once again nearing a record.

The primary driver was the healthcare sector, up 1.1%, with key constituent CSL Limited (ASX: CSL) up 2.4% offering the majority of the support.

2-year ASX 200 chart

Source: Rask Media 2-year ASX 200 chart

ANZ dividend surprise

By far the biggest highlight of the day was ANZ Banking Group Ltd (ASX: ANZ) finally putting investors out of their misery, delivering a 45% increase in half-year cash profit to $2.98 billion.

Most importantly, management declared a dividend of 70 cents per share, ahead of expectations and double that paid in 2020.

CEO Shayne Elliott called out Westpac Banking Corp (ASX: WBC) on their massive cost-cutting program and highlighted the risk to morale of mass layoffs but announced a 2% fall in costs for his own firm.

The pandemic-era bad debts have been further reduced with $500 million released, sending the bank’s capital ratio into a very strong position. ANZ shares finished the day 3.2% lower.

Healius core business recovering

Private hospital, imaging and COVID-19 testing firm Healius Ltd (ASX: HLS) finished flat despite reporting that its non-COVID business was recovering, with revenue increasing 5%.

The biggest drivers were an 8% increase in imaging and a 25% jump in day hospital and similar surgeries, all of which came on top of the three million COVID-19 tests processed by the group.

Mapping the future 

Aerial imaging group Nearmap Ltd (ASX: NEA) had another busy day, with the share pricing leading the market, jumping 14.6% after management increased its full-year revenue guidance from $120-$128m to $128 -$132 million.

Soon after Nearmap entered a trading halt, confirming it had been issued with legal proceedings in the US but offering little in the way of the associated claims. The company remains confident in delivering 20-40% revenue growth targets from 2022 onwards.

QBE dividends to recommence

QBE Insurance Group Ltd (ASX: QBE) added 4.1% after management confirmed a dividend would be paid before the end of 2021 and would likely reflect around 65% of cash profit.

The company has performed well, with premiums increased 10%, however, the majority has come from higher costs to existing customers, up 9.8%, rather than growth in its member base.

Amcor’s resilience grows

Responsible packaging producer Amcor CDI (ASX: AMC) reported $55 million in synergies from its Bemis acquisition and has since upgraded its earnings range from 10-14% to 14-15%, a significant improvement.

Third-quarter profit was 58% higher at US$684 million, with the dividend set to be increased. Amcor shares added 2.7% on the news.

ASX 200 today

The ASX 200 is expected to edge higher when the market opens on Thursday following a mixed lead from US markets overnight. For the latest news, check out Rask Media’s US stock market report.

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.

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Disclosure: At the time of publishing, Drew owns shares in CSL.

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

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