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ASX 200 morning report – ANZ, MFG & GNC shares in focus

The S&P/ASX 200 (ASX: XJO) managed a solid fightback during the session on Monday, falling as much as 1% at the open but finishing down just 0.1% for the day.

There were only three sectors higher, being energy, materials and technology, gaining 1.6%, 0.8% and 0.6% respectively, whilst the healthcare and real estate sectors both fell 1.3%.

ANZ provides Q1 update

Among the largest drags on the market on Monday was ANZ Banking Group (ASX: ANZ), which fell 1.9% after announcing quarterly results and revealing a further 8 basis point reduction in its net interest margin.

In positive news, ANZ’s loan processing has caught up with its competitors and provisions remain low.

Douglass takes leave

Fund manager Magellan Financial Group Ltd (ASX: MFG) fell another 11% after the unexpected news that CIO and Portfolio Manager Hamish Douglass had taken an indefinite medical leave of absence from his role.

His co-founder Chris Mackay will takeover portfolio management duties, but the market is clearly concerned about how long Douglass will be out of the role.

Assets under management fell by $2 billion in January, the majority of which was driven by the broad sell off in global sharemarkets.

GrainCorp upgrades

Shares in GrainCorp Ltd (ASX: GNC) topped the market after reporting a second consecutive ‘bumper crop’ with shares gaining 12.3%.

The strong season will see earnings finish the financial year between $480 million and $540 million, a significant improvement on the $331 million reported in the prior year.

Net profit is expected to double from $139 million to $280 million in FY22.

ASX travel shares surge

The ASX travel sector surged after the Prime Minister announced that the country would be welcoming tourists from 21 February 2022 after more than two years of lockdowns.

Those companies who have managed to survive should be ready for a bumper year, with Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Ltd (ASX:CTD) gaining 7.8 and 7 per cent respectively on the news.

James Hardie’s construction boom

James Hardie Industries (ASX: JHX) has moved on from the recent leadership issues to forecast a stronger than expected 2022 financial year.

The booming residential construction market here and in the US and price increases have contributed to a potential US$620 to $630 million result, up from US$580 to $600 million forecast last year. James Hardie gained 2% on the news.

ASX 200 today

Looking ahead, the ASX 200 is expected to edge lower when the market opens this morning. This comes following a broadly negative lead from US stock 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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Disclosure: At the time of publishing, Drew owns shares in Magellan.

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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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