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ASX 200 morning report – BHP, MP1 & HUB shares in focus

The S&P/ASX 200 (ASX: XJO) couldn’t overcome another negative lead from US stock markets on Wednesday, with bond rates and US reporting season driving the market again.

Only two of the ASX 200’s 11 sectors posted a positive result, with technology continuing its selloff by falling 2.6% and the healthcare sector, down 1.6%, also underperforming.

Once again, energy remains the highlight as oil moved towards multi-year highs with the likes of Origin Energy Ltd (ASX: ORG) benefitting from the rally, finishing 1.4% higher.

Megaport share price tumbles

The major detractor from the market on Wednesday was Megaport Ltd (ASX: MP1) with the data centre service provider falling 16% after delivering weaker than expected revenue growth of just 8%.

Source: Rask Media 2-year Megaport share price chart

Dixon in administration

Shares in E&P Financial Group Ltd (ASX: EP1), formally Evans & Dixon, fell just 1.7% despite announcing that the Dixon Advisory business that focused on SMSF investors had entered voluntary administration as legal cases, class actions and complaints mount about conflicted advisers over the last decade and ultimately threatened the group’s solvency.

BHP flags weaker quarter 

BHP Group Ltd (ASX: BHP) fell along with the market after reporting a better than expected finish to 2021, shipping 73.2 million tonnes of iron ore compared to the 71.4 million expected.

This was an improvement on Rio Tinto Limited’s (ASX: RIO) weaker performance but BHP’s management noted that disruptions were ahead as WA and Queensland loosen restrictions and the ongoing impacts of a train driver shortage.

Whilst exports were down 3%, the received price improved to US$113.54 per tonne, with the company also enjoying record coking coal prices amid a global energy crisis. Production of coking coal fell 10%, whilst copper and nickel production were also down double figures due to maintenance.

Lynas hits records

Shares in Lynas Rare Earths Ltd (ASX: LYC) fell 1.1% despite reporting record revenue of $200 million in the quarter, a 60% increase on September. Production grew by around a third with demand for its key rare earths remaining ‘very strong’.

Hub24 gaining $1 billion per month

Hub24 Ltd (ASX: HUB) gained 2.1% after reporting another $3.6 billion in platform inflows, taking total assets under administration to $68.3 billion. The quarter saw 28 new agreements with financial advisory firms as the independent advisory space continues to expand.

ASX 200 today

Looking ahead, the ASX 200 is set to edge higher at the open this morning despite all three US benchmarks finishing in the red 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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