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ASX 200 morning report – CWN, JBH & BKW shares in focus

The S&P/ASX 200 (ASX: XJO) managed to eke out another small gain on Thursday finishing 0.1% higher, powered by the ASX utilities sector which gained 2.6%. The sector is benefitting from growing demand for energy and improving gas prices with Origin Energy Ltd (ASX: ORG) a major contributor, gaining 3.0%.

The ASX energy sector also rallied as the oil price remains elevated, with Woodside Petroleum Limited (ASX: WPL) adding 2.8%.

Crown not fit but retains license

But all eyes were on Crown Resorts Ltd (ASX: CWN), which is under a bid from Blackstone group, as gained 0.2% despite the Western Australian Royal Commission finding the company unfit to have a casino license. The license was retained and the company looks set to change hands this year.

NAB doubles buyback, ANZ’s digital dollar

As highlighted yesterday, National Australia Bank Ltd (ASX: NAB) has doubled its on-market share buyback, announcing another $2.5 billion in excess capital will be used to bring its capital ratio back to 10.5%. NAB shares finished 0.2% higher.

ANZ Banking Group (ASX: ANZ) shares were 0.6% lower after the company launched its own ‘stablecoin’, a digital version of the AUD for online transactions.

JB Hi-Fi sales remain resilient

JB Hi-Fi Limited (ASX: JBH) continues to overcome the threat of Amazon (NASDAQ: AMZN) and Kogan.com Ltd (ASX: KGN), with management highlighting heightened demand and strong sales growth in the third quarter.

Sales growth of 11.3% has been delivered for the year to date in Australia, with the white goods retailer The Good Guys even adding 5.7%. On a year-to-date basis, sales growth is lower at just 1.5% due to the strong comparable in 2021.

The company has continued to focus on cost control, meaning it has been able to maintain margins in a competitive environment, with the news sending the JB Hi-Fi share price 4.3% higher. The company refused to offer guidance for the final quarter.

Brickworks profit jumps

Brickworks Limited (ASX: BKW) delivered its largest first-half profit on record, an 800% increase on the prior year to reach $581 million.

The sale of shares in Washington H Soul Pattinson & Co Ltd (ASX: SOL), the listed investment company that merged with Milton Corporation Limited (ASX: MLT) were a key contributor.

But even once excluded, profit was 270% higher after the company increased the cost of bricks, roofing tiles and masonry to maintain margins. Brickworks shares jumped 5% on the upgrade.

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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