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ASX 200 set to rise – PGH, SXY & SHV shares in focus

Concerns that the Omicron-related sell-off would look similar to March 2020 were settled on Monday, with the S&P/ASX 200 (ASX: XJO) recovering from a steep fall at the open to post a loss of just 0.5%.

The biggest contributor was a more positive outlook from US markets, where futures tracked higher as investors seemed willing to wait on more data about the symptoms from the latest mutation.

The ASX materials sector has continued its strong recent run, with BHP Group Ltd (ASX: BHP) gaining another 1.4% and the sector up 0.7%.

Technology was the other and only winner, gaining 0.7% with Hub24 Ltd (ASX: HUB) the standout, adding 4.8% on little news.

Every other sector finished lower with the property and energy sectors both falling 1.4% as the threat of restrictions concerned investors.

Unibail Rodamco Westfield (ASX: URW) was the biggest detractor, falling 6.2% with Vicinity Centres (ASX: VCX) not far behind, down 4.8%.

Rural Funds Group (ASX: RFF) bucked the trend, adding 1%, after announcing it had purchased another cattle farm for $69 million as its expansion continues.  

Energy sector uncertainty

Shares in Senex Energy Ltd (ASX: SXY) fell another 0.3% as management agreed to extend its exclusivity period with Posco International, a global acquirer.

The news comes as OPEC suggested they may be unlikely to increase oil output next year as they seek to combat the Omicron-induced fall in the oil price.

Pact Group reports

Shares in Pact Group Holdings Ltd (ASX: PGH) fell by over 12% after the packaging and recycling group forecast a $5 million fall in earnings for the first half of FY22.

Management highlighted strong growth in its core businesses, but contract manufacturing had taken a significant hit due to Victorian lockdowns.

Select Harvests hit with lower prices

Select Harvests Limited (ASX: SHV) overcame a major downgrade from the broking community to fall just 1.2% on expectations of the all important almond price in California.

The Port of Oakland reported an 18% decline in exports due to growing supply chain issues.  

ASX 200 today

Looking ahead, the ASX 200 is expected to push higher this morning, following a positive lead from US markets overnight.

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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