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ASX 200 morning report – WES, WTC & APX shares in focus

The S&P/ASX 200 (ASX: XJO) finished just 3 points lower on Friday but managed a 2.2% gain for the week.

The ASX discretionary sector dragged the market lower behind Wesfarmers Ltd (ASX: WES) which fell 1.6%, with Appen Limited (ASX: APX) also dragging the IT sector lower (down 1.2%) falling 6.1% as investors continue to desert the popular growth stock.

Investors switched back to industrials and utilities as the reopening outlook remains murky, with Qube Holdings Ltd (ASX: QUB) and Origin Energy Ltd (ASX: ORG) both over 2% higher.

Wesfarmers’ big dividend

But it was all about Wesfarmers on Friday, with the diversified conglomerate announcing a 17% increase in its final dividend and a $2 per share capital return following a stunning year from the well-managed company.

Profit increased 16% to $2.42 billion, driven by double-digit growth at Bunnings and Kmart and a solid return from Officeworks.

Revenue at Bunnings was 12% stronger, not bad for a mature business, with Kmart, Target and Catch Group together growing 69% amid an e-commerce boom.

ASX weekly movers

The week was dominated by ASX reporting season surprises, primarily negative.

Consumer staples and discretionary sectors were both down, 3% and 1.3% respectively, with both Kogan.com Ltd (ASX: KGN) and Link Administration Holdings Ltd (ASX: LNK) unable to live up to inflated expectations.

WiseTech Global Ltd (ASX: WTC) was the standout, surging 29.3% on its FY21 report, with Qantas Airways Limited (ASX: QAN) jumping 21% after outlining its plans to exit this lockdown mess.

Featured: Rapid-fire ASX results coverage on The Australian Investors Podcast

ASX 200 today

Looking ahead, the ASX 200 is expected to open higher on Monday, following a positive lead from US markets on Friday.

ASX reporting season is in its final days, with the likes of Fortescue Metals Group Limited (ASX: FMG), Altium Limited (ASX: ALU) and Crown Resorts Ltd (ASX: CWN) set to report today.

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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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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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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