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ASX 200 morning report – Kogan share price canned

The S&P/ASX 200 (ASX: XJO) finished Friday on a positive note, up 0.2%, delivering a weekly gain of the same amount.

For the day, only the materials and energy sectors finished lower, the latter on concerns of a boost in supply from Iran.

The consumer staples and healthcare sectors both ended more than 1.7% higher; CSL Limited (ASX: CSL) was a key contributor, finishing 2.2% higher.

Kogan canned

The pain continued to pile up during the week with some high profile growth companies seeing significant sell-offs as reality catches up to expectations.

Redbubble Ltd (ASX: RBL) fell another 4.4% but all eyes were on online marketplace and Amazon lookalike Kogan.com Ltd (ASX: KGN), which fell 14.3% after flagging ‘supply chain disruptions’ and downgrading earnings.

There was a lot of management speak, highlighting ‘supply chain inefficiencies’ and ‘inventory planning challenges’ caused by ‘market dislocations’.

But ultimately, it appears the company loaded up on too much stock following a bumper 2020 and is now struggling to sell it. The result is higher costs and weaker margins.

ASX weekly winners and losers

Across the week, EML Payments Ltd (ASX: EML) was the biggest detractor, falling 34.6% on regulatory concerns, with both Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) showing resilience from the tech sell-off to jump 19.4% and 13.1%, respectively.

ASX 200 today

The ASX 200 is heading towards a flat open on Monday according to the latest ASX futures. This comes following a mixed lead from US markets on Friday. For all the latest, 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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