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ASX morning report – PPG & VRT shares in focus

The S&P/ASX 200 (ASX: XJO) finished the week on a high note, gaining 1.9% on the back of an incredible surge in the technology sector.

The mid-session turnaround in the Nasdaq pushed the ASX technology sector to a 6.9% gain after US-listed payment provider and owner of Afterpay, Block Inc CDI (ASX: SQ2) gained 15%, with Xero Limited (ASX: XRO) also recovering 9.4% on improving confidence.

Every sector finished higher with the defensive consumer staples and utilities underperforming, up 0.8% and 1.1%, whilst retailers and the property sector were both up over 2%.

Pro-Pac share price crumbles

Shares in packaging manufacturer Pro-Pac Packaging Limited (ASX: PPG) fell 17.9% after downgrading profit expectations to just $5 million. The small-cap company flagged supply chain issues and surging raw materials costs ranging from resin to sea freight charges.

Virtus Health downgrades

It was a similar story for Virtus Health Ltd (ASX: VRT), which downgraded forecasts and no longer expects to recover ground lost to surgery cancellations.

The result was a 1.6% fall in revenue and a 30% drop in earnings in the 10 months to 30 April 2022. Virtus Health shares finished the day 0.9% lower.

ASX weekly movers

Across the week, the ASX 200 still fell 1.8%, with technology the biggest detractor, down 6.6%, and healthcare outperforming amid the volatility.

PolyNovo Ltd (ASX: PNV) topped the market gaining 44%, whilst Chalice Mining Ltd (ASX: CHN) and Novonix Ltd (ASX: NVX) felt the brunt of the commodity weakness, down 24% and 21% each.

ASX 200 today

Looking ahead, the ASX 200 is expected to open higher this morning, following a strong lead from US markets on Friday.

The tech-heavy Nasdaq was the standout, rebounding 3.8%. 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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