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ASX 200 set to rise – WES, MFG & LNK shares in focus

It was looking like another strong day for the market with the S&P/ASX 200 (ASX: XJO) trading positively throughout most of the session, but ultimately finishing 0.2% lower on Monday.

US futures were the primary contributor with a growing impasse in negotiations between Ukraine and Russia blamed for the weakness into the close.

Just five ASX sectors traded higher on the day with technology once again leading the way. Block Inc (ASX: SQ2) shares gained 9.2% after bond yields fell at the end of last week.

Iron ore has once again moved beyond US$150 per tonne, despite Chinese lockdowns, which supported BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) to outperform slightly.

Shares in Magellan Financial Group Ltd (ASX: MFG) were weaker once again after CIO Hamish Douglass resigned from the board, likely only until he returns from mental health leave.

Wesfarmers Ltd (ASX: WES) gained 0.7% after the Federal Court of Australia approved its takeover of Australian Pharmaceutical Industries Ltd (ASX: API); now comes the hard work to integrate and extract efficiencies.

AUD continues to rally

Despite fears that a tanking Australian dollar would contribute to an expected spike in inflation in Australia, the AUD has continued to rally throughout the Ukraine crisis, reaching 0.74 US cents last week and confounding many experts.

This has negatively impacted the likes of Northern Star Resources Ltd (ASX: NST) and Newcrest Mining Ltd (ASX: NCM) which fell 2.5% and 2.2% with the AUD gold price moving lower.

Link deal nears completion

Link Administration Holdings Ltd (ASX: LNK) shares gained 1.2% after private equity suitor Dye & Durham confirmed they will look to close the deal in June this year whilst also agreeing to seek the sale of their Banking and Credit Management division.

Qube announces buyback

Qube Holdings Ltd (ASX: QUB) were also 1.3% stronger after management confirmed its intention to return $400 million from the sale of its Moorebank terminal to shareholders.

It comes after several months of analysis to determine the most appropriate structure with retirees and zero-tax entities set to benefit most.

Alumina exports banned

Shares in Alumina Limited (ASX: AWC) fell 1.5% after the Australian Government banned the export of Australian alumina to Russia, which represents close to 20% of their annual requirements; the price of the commodity rocketed as a result.

ASX 200 today

Looking ahead, the ASX 200 is set to push higher this morning despite a slightly negative lead from US stock 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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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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