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ASX 200 hits 2-month high, Premier Investments disappoints

The Australian market remains resilient to the threat of higher energy prices with the S&P/ASX 200 (ASX: XJO) gaining another 0.3% to finish the week.

The result was driven by a rally in the energy, materials and utilities sectors, which gained 0.9%, 1.3% and 1%, respectively.

Investors are clearly flocking to perceived inflation hedges with the ASX 200 finishing up 1.5% for the week and touching a two-month high.

Healthcare remains severely challenged as Telix Pharmaceuticals Ltd (ASX: TLX) fell another 11% on Friday, finishing the week down 17.6%.

But it was all about the ASX retailers and commodity producers on Friday, with JB Hi-Fi Limited (ASX: JBH) gaining another 3.6% and Flight Centre Travel Group Ltd (ASX: FLT) increasing by the same amount.

Premier disappoints

In company-specific news, Premier Investments Limited (ASX: PMV) fell 1.5% after disappointing investors with its latest quarterly update.

The group, which owns Smiggle and Peter Alexander, reported global sales growth of just 0.6%, but like-for-like sales growth of 8.9%, suggesting new store openings aren’t having the same impact.

Some 42,675 trading days were missed during the half, with gross profit increasing just 1.7% as a result, but up 10% on 2020.

Online sales hit a record of $195 million and the company delivered its highest interim dividend ever.

ASX 200 weekly movers

Over the week it was a similar story to Friday, with the energy, materials and utilities sectors all gaining more than 5% as the energy price remains high, with healthcare underperforming, down 2.5%.

ASX 200 today

Looking ahead, the ASX 200 is expected to edge lower when the market opens this morning, following a mixed lead from US stock markets on Friday.

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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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