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ASX 200 set to fall – defensive rotation begins, TLS & ANZ shares in focus

The S&P/ASX 200 (ASX: XJO) strengthened throughout the day, ultimately finishing 0.8% lower on Monday despite being as low as 1.1% during the morning session.

The ASX mining and energy sectors were weakest on concerns of a global outbreak of the Delta variant, with both falling by more than 2%.

BHP Group Ltd (ASX: BHP) was one of the worst-hit, down 2.6%, whilst PNG oil explorer Oil Search Ltd (ASX: OSH) dropped by over 5% after losing its Managing Director Dr Kieran Wulff. Reports have suggested the departure was due to health issues, but management have noted a series of complaints against the leader.

CSL Limited (ASX: CSL) was back in favour on Monday as investors flocked to ‘quality’, sending shares 1.8% higher ahead of earnings season.

Telstra takes on China

Following speculation over the weekend, Telstra Corporation Ltd (ASX: TLS) confirmed its interest in acquiring Digicel Pacific, the biggest telecommunications provider in the Pacific Islands.

Management noted any deal would require the support of the Federal Government to manage geopolitical and other risks, something likely to be well supported given China’s intense interest in the group which has over US$235 million earnings.

ANZ launches share buyback

ANZ Banking Group Ltd (ASX: ANZ) announced it would be buying back $1.5 billion of its own stock, with shares outperforming on a down day.

The share buyback will be on market, akin to the approach taken by many US companies who view their assets as being undervalued.

Altium tumbles

Altium Limited (ASX: ALU) pushed lower after rumours spread that the takeover from AutoDesk may not come to fruition.

After halting shares, management had little to add, which sent the Altium share price down 3.8%.

Cooper Energy’s record quarter

Victorian gas play Cooper Energy Ltd (ASX: COE) fell 4% despite delivering a record year for production, sales and revenue.

The company confirmed that production from its difficult Orbost plant had jumped 69% in the financial year, with sales almost doubling growing 94% to 3 million barrels. The result was a 69% increase in revenue to $131 million.

Humm profit doubles

BNPL convert Humm Group Ltd (ASX: HUM) reported a doubling of cash profit to $68 million for the year.

Previously known as Flexigroup, the group processed $304 million of transactions in the June quarter, 69% growth, sending shares over 8% higher.

ASX 200 today

The ASX 200 is tipped to fall at the open on Tuesday. This comes following a negative lead from US markets overnight as concerns of a global outbreak of the Delta variant grow.

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 Cooper Energy.

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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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