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All Ordinaries (INDEXASX:XAO) gains on “Whitehaven-BHP Deal”

The local share market bounced back on Wednesday, with both the All Ordinaries (INDEXASX: XAO) and S&P/ASX200 (INDEXASX: XJO) finishing 0.3% higher, buoyed by a 2.5% gain in the energy sector and 0.9% from healthcare.

These were five of 11 sectors to finish higher with growing concerns about conflict in the Middle East pushing both the oil and gold share price higher.

Woodside Energy Group Ltd (ASX: WDS) was a standout, adding 2.2% after the company posted a return to growth, with revenue up 6% to $5.1 billion, as higher production offset lower prices.

Coal miner Whitehaven Coal Ltd (ASX: WHC) gained several hundred million in value, as share prices rallied 11.5% on news of a deal with BHP Group Ltd (ASX: BHP).

Whitehaven Coal Ltd (ASX: WHC) share price

The latter is selling two major Queensland coking coal mines to Whitehaven for $6.4 billion which will add significantly to diversification and reduce operational risks.

Cettire Ltd (ASX: CTT) drops despite doubling of sales

Share prices in luxury goods retailer Cettire Ltd (ASX: CTT) fell 3.4% despite the company reporting a near doubling of revenue to $167 million.

Cettire Ltd (ASX: CTT) share price

 

While a strong result, there are growing concerns about the resilience of the Australian consumer in face of a skyrocketing cost of living.

Liontown Resources Ltd (ASX: LTR) remains in a trading halt as the company seeks in excess of $1 billion in funding to proceed with its Kathleen Valley mine following the exit of global buyer Albemarle Corporation (NYSE: ALB).

Liontown Resources Ltd (ASX: LTR) share price

More signs of pain are emerging from the lending sector, reflecting in the significant sell off in Credit Corp Group Limited (ASX: CCP) which fell by more than 30%. Credit Corp cut guidance for the financial year and flagged a potential impairment as the risk of bad debts continues to increase. The impairment threatens a halving of earnings compared to the prior year.

On the positive side, Chinese GDP grew 1.3% during the quarter and 4.9% for the year, smashing expectations and adding to hopes of a stimulus led global recovery.

Global markets fall as bond yields shift past 5%

All three US benchmarks fell by close to 1% on Wednesday, as they face the dual threat of surging bond yields and a slowing economy on the back of the Israel-Gaza conflict.

The Dow Jones Industrial Average (INDEXDJX: .DJI) share price outperformed, falling 1%, while the Nasdaq Composite (INDEXNASDAQ: .IXIC) share price was off 1.6% and the S&P 500 (INDEXSP: .INX) share price 1.3% as the 30-year bond yield moved past 5%, and to a 16 year high.

The concerns escalated following the reported bombing of a hospital in Gaza and threat of further escalation.

On the positive side, new home construction in the US showed signs of recovery, up 7% in September, following a series of monthly declines.

In company specific news, Morgan Stanley (NYSE: MS) share price fell by close to 7% after the company reported a 10% fall in profit, pushed lower by revenue growth of just 1% and increasing competition.

Morgan Stanley (NYSE: MS) share price

That said, banking deals are beginning to increase and the pivot to wealth management is slowly paying off with asset managing income 6% higher.

It was the opposite story for Procter & Gamble Co (NYSE: PG) share price which gained 2% after the company reported a 10% increase in profit, buoyed by the ability to pass on 7% cost increases across its various beauty and grooming businesses.

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 or their clients may have a financial interest in some of companies or securities 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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