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ASX 200 morning report – WEB, TNE & HVN shares in focus

Weak global sentiment continues to pressure the S&P/ASX 200 (ASX: XJO) with the market falling another 11 points or 0.2% on Wednesday.

This time the selling was widespread, with just utilities and energy gaining 1% and 1.2%, respectively, whilst the technology and industrial shares bore the brunt of the selloff.

TechnologyOne and Pinnacle shares tumble

TechnologyOne Ltd (ASX: TNE) was the biggest detractor, falling 8.6% after the company’s FY21 result, which saw profit growth of 14%, was met with concerns about unsustainable valuations.

Pinnacle Investment Management Group Ltd (ASX: PNI) shares were also 5.6% lower after exiting their trading halt following a discounted capital raising to fund the purchase of private equity firm Five V Capital.

The ASX energy sector was boosted by Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) which gained over 2% each.

Meanwhile, ASX iron ore shares also continued their strong recent run as the Chinese price reached US$100 per tonne once again.

Featured: Fortescue ASX share review on The Australian Finance Podcast

RBNZ hikes rates (again)

In a much-anticipated decision, the Reserve Bank of New Zealand hiked rates for the second time from 0.5% to 0.75% in an effort to slow down the incredible housing price increases, which exceeded 30% over the last 12 months.

ASX slapped with ASIC conditions

Shares in ASX Ltd (ASX: ASX) fell 1.4% after ASIC released a scathing report into the shutdowns that occurred in 2020.

The result will be a greater level of oversight and management responsibility, with professional services firm Ernst & Young to be involved in the entire process ahead of the launch of the new CHESS system.

Webjet at “tail end” of pandemic

ASX travel group Webjet Limited (ASX: WEB) gained 1.4% after reporting a $3.5 million profit per month in the financial year to date.

Whilst the quantum isn’t great, the fact that the company is profitable is an important step as it nears what management has described as the ‘tail end’ of the pandemic.

Harvey Norman profit slumps

Shares in Harvey Norman Holdings Limited (ASX: HVN) fell 1.7% after releasing a trading update for the first five months of FY22.

The ASX retailer reported a 36% fall in profit compared to 2020 levels, due to significantly stronger comparable results.

Total sales revenue contracted by close to 9%, with signs that the work-from-home boom may mean a slowdown in white goods and furniture sales.

ASX 200 today

Looking ahead, the ASX 200 is expected to edge higher when the market opens on Thursday, following a mostly positive lead from US markets overnight. 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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