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.

ASX 200 morning report – CBA & Boral shares in focus

The S&P/ASX 200 (ASX: XJO) followed global markets lower to begin the week, falling 1.8% after being as much as 2% lower during the session.

CBA sells insurance

Among the most significant detractors was the Commonwealth Bank of Australia, with Australia’s largest company falling more than 5%.

The sell-off was primarily due to the about-turn of the Federal Reserve, with banks amongst the biggest winners of the vaccine recovery, but management also announced the sale of its General Insurance business, CommInsure.

The group agreed to a sale price of $625 million for the massive insurer to South African-based Hollard Group, with commissions to continue for many years. The sale will represent a profit of around $90 million and marks the final step in Matt Comyn’s simplification strategy.

Insurance was the 13th divestment the company has made since 2017 and opens the opportunity for a $5 billion return of capital to investors.

Defensive names resilient

The value recovery may well be over before it began, with key defensive names Woolworths Group Ltd (ASX: WOW) and CSL Limited (ASX: CSL) among the only stocks to hold their ground on the basis of their strong, consistent and less cyclical earnings. Consumer staples and IT were the only sectors to deliver positive returns, up 0.2% each.

Boral selling building products

Retail sales came in well below expectations in May, delivering growth of just 0.1% compared to the 0.4% expected. The culprit was the ‘snap’ Victorian lockdowns, which sent retail spending down 1.5% in the state for the month alone.

Outside of Victoria, growth was stronger but by no means the buoyant level predicted by economists in 2020.

Boral Limited (ASX: BLD) was another rare winner, jumping over 1.3% after agreeing to sell its North American building products business to Westlake Chemical Corp for $2.9 billion.

This was well ahead of the $1.9 billion that domestic analysts had valued the company and an unexpected event for predatory Seven Group Holdings Ltd (ASX: SVW), which continues with its low ball $6.50 offer.

Retail trade bit by Victorian lockdown

Retail sales came in well below expectations in May, delivering growth of just 0.1% compared to the 0.4% expected. The culprit was the ‘snap’ Victorian lockdowns, which sent retail spending down 1.5% in the state for the month alone.

Outside of Victoria, growth was stronger but by no means the buoyant level predicted by economists in 2020.

ME Bank deals approved

Finally, recent deals have been closed with the Foreign Investment Review Board approving the acquisition of telecommunications group Vocus Group Ltd (ASX: VOC) by Aware Super and Macquarie’s Infrastructure and Real Asset division; and Bank of Queensland Limited (ASX: BOQ) receiving the Treasurer’s approval for its purchase of ME Bank.

ASX 200 today

The ASX 200 is expected to rebound on Tuesday, with the latest SPI futures pointing to a positive open. 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.

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, Drew owns shares in CSL.

Powered by

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

Skip to content