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ASX 200 morning report – APT, Z1P & MQG shares in focus

The S&P/ASX 200 (ASX: XJO) finished flat on Friday with strength across most consumer-facing sectors, including discretionary (up 1.4%), staples (up 0.9%) and property (up 0.7%).

This was offset by another sharp sell-off in energy companies, which were down over 2% as reality kicked in about the oil ‘shortage’.

RBA gets busy, BNPL in crosshairs

The RBA had a busy day, announcing they believe it is in the best interests of the retail market for BNPL players, including Afterpay Ltd (ASX: APT), to remove the contractual terms that restrict the retailers they work with from passing their cost onto the end consumer.

Despite the potential for a significant impact on profitability, Afterpay shares fell just 0.3% while Zip Co Ltd (ASX: Z1P) shares finished 1.8% lower.

The RBA also doubled down on bond-buying, effectively confirming their intention to keep rates below 0.1%.

Aurizon’s big acquisition

Aurizon Holdings Ltd (ASX: AZJ) announced a plan to acquire One Rail from Macquarie Group Ltd (ASX: MQG) for $2.35 billion. Aurizon shares fell 6% on the news and were down more than 7% for the week.

Lynas share price tumbles

Rare earths darling Lynas Rare Earths Ltd (ASX: LYC) also bore the brunt of COVID shutdowns, falling 8% on Friday after announcing a 30% fall in sales in the  September quarter.

ASX 200 weekly movers

Over the week, the ASX 200 gained 0.7%, behind strong performances by Wesfarmers Ltd (ASX: WES) and Macquarie, the two Australian powerhouses gaining close to 5%.

Wesfarmers highlighted robust sales at Bunnings despite challenges at Target and Kmart, whilst Macquarie took the crown as the most profitable investment bank in a bumper year that has shares nearing $200.

ASX 200 today

Looking ahead, the ASX 200 is set to open higher on Monday despite a broadly negative lead from US markets on Friday.

Snapchat (NYSE: SNAP) and Intel (NASDAQ: INTC) made headlines, with both shares falling more than 10%. 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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Disclosure: At the time of publishing, Drew owns shares in Zip.

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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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