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ASX 200 hits record high – WES, GXY & MSB shares in focus

The S&P/ASX 200 (ASX: XJO) finished at an all-time high, adding 0.6% on Thursday as the energy sector continued to rally.

The energy sector was 3.3% higher along with utilities, up 2% again, whilst consumer discretionary was the only detractor, falling 1.1%.

Worley Ltd (ASX: WOR), which provides services and engineering to the oil and gas sectors, was the highlight, jumping 7.7% in the session.

Australian retail sales higher

Company reports continue to slow with markets turning to economic results for guidance. Thursday was the latest retail sales figures, which showed spending increased another 1.1% in April, in line with expectations.

The result was driven by restaurant and café spending, which was 2.3% higher with department store sales continuing to fall, down 6.7% in the month. The result puts retail sales at 25% compared to the same time last year.

$8 billion trade balance

Australia posted its 40th successive trade surplus, hitting $8 billion, with iron ore and coal exports remaining strong, but agricultural making a strong recovery, up 3.8% in April.

Wesfarmers flags tough comparables

Shares in Wesfarmers Ltd (ASX: WES) fell 2.1% after confirming expectations that comparable sales from 2020 will likely result in some negative results in 2021.

That said, management confirmed that its retail businesses were seeing strong sales growth, particularly when compared on a two-year basis.

Galaxy upgrades expectations

Lithium miner Galaxy Resources Limited (ASX: GXY) added 1% after upgrading production guidance as the company delivers at a faster rate than expected.

Mt Cattlin is producing at full capacity, with 33.5k tonnes shipped and full-year guidance increased by 10,000 dry metric tonnes.

Mesoblast still struggling

Mesoblast Ltd (ASX: MSB) continues to battle sentiment reporting quarterly results, with the company falling 3.1% after warnings that it may not have enough cash to meet its objectives over the next 12 months, increasing the likelihood of another capital raising.

Tyro class action

Tyro Payments Ltd (ASX: TYR) fell 1.4% after a second class action was flagged over the shutdown of its terminals in 2020.

New vehicle sales power ahead

New vehicle sales jumped 100k in May, the highest level in over four years, with sales up 68% over a year ago, evidencing that consumers are increasingly focused on spending and travelling at home rather than abroad.

ASX 200 today

The latest SPI futures are pointing to a slightly positive open on Friday, with the ASX 200 expected to edge higher when the market opens. This comes despite a negative lead from US markets overnight. For all the latest, check out Rask Media’s daily 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 Tyro Payments.

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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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