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ASX 200 morning report – AST, SLR & DHG shares in focus

The S&P/ASX 200 (ASX: XJO) finished the week on a negative note, falling 0.4% dragged lower by the real estate sector, which fell 2.1%.

The materials sector continued its recent weakness, down 1.3% behind another 1.7% fall in BHP Group Ltd (ASX: BHP) despite the iron ore price finally settling.

The real estate sector sold off heavily seemingly on the threat of central bank intervention into the property market.

ASX gold miners were also hit, with Silver Lake Resources Limited (ASX: SLR) down 5.1% as the gold price dropped on news of a rate hike in the US, which suggests an increasing opportunity cost of holding non-yielding assets; yet only time will tell.

Domain’s record, oil hits multi-year high

Domain Holdings Australia Ltd (ASX: DHG) hit a record high as predictions that property prices would increase 20% in the next 12 months grew.

Source: Rask Media 2-year DHG share price chart

Similarly, the oil price hit the highest level since 2019, sending Santos Ltd (ASX: STO) 1.9% higher.

ASX 200 weekly movers

The ASX 200 finished the week down 0.8% despite the rough start on Monday, with the biggest highlight being AusNet Services Ltd (ASX: AST) jumping 28.8% as a bidding war appears to be on the cards.

Markets tended to look beyond the Chinese property market issues, backing in traditional energy companies, including Beach Energy Ltd (ASX: BPT) and Whitehaven Coal Ltd (ASX: WHC) on signs of a strong global recovery.

The lesser known, lower quality miners bore the brunt of the sell-off, with Lynas Rare Earths Ltd (ASX: LYC) falling 8% and Nickel Mines Ltd (ASX: NIC) down 12.8% over the five days.

ASX 200 today

Looking ahead, the ASX 200 is heading towards a flat open on Monday despite a mostly positive lead from US markets on Friday. To find out more, check out my 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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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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