ASX 200 (XJO) morning report – QUB, SCG & GNC shares in focus

The S&P/ASX 200 (ASX: XJO) is tipped to open higher this morning according to ASX futures. Here’s what ASX investors need to know.

ASX share market recap

As the saying goes, sharemarkets take the stairs up and the elevator down. The ASX 200 followed the global lead on Wednesday finishing 2.2% lower, with all but 13 stocks in the index finishing lower. Energy companies including Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) fell by 4.4% and 5.4%, respectively, as oil prices took another hit from signs of another round of global lockdowns.

Predictably, consumer staples and materials outperformed, albeit delivering less negative results for the day. The sell-down was initially triggered by the Nasdaq 100 entering a correction falling 11% in three days, however, given the market is up 41% over the last 12 months, recent volatility should be kept in context.

Graincorp Ltd (ASX: GNC) was among the worst-hit yesterday, falling 8.9% after it was forced to make a $70 million insurance payment following a better than expected 2020 crop.

Featured video: The Australian Finance Podcast – September Q&A

Qube secures extension, Scentre weighing up options

Australian Retailers Association CEO Paul Zahra confronted the Victorian Government’s lockdown measures head-on, suggesting “around 50% of small [retail] businesses in Victoria will permanently close” and reiterating the importance of the retail sector in an eventual economic recovery.

Qube Holdings Ltd (ASX: QUB) announced that its Patrick Terminals business secured an extension to the Port of Melbourne lease until 2066, solidifying its already strong position. The company is committed to improving supply chain efficiency across Australia and stands out as a key beneficiary of the re-shoring of capacity post this pandemic.

According to Morgan Stanley, Scentre Group (ASX: SCG) may be forced to suspend dividends, undertake a dilutive capital raising or consider divesting a portion of its portfolio to get its gearing levels back under control; shares fell 4.0%.

Technology leads turnaround

The ASX will open higher on Thursday after US markets stemmed the bleeding, the S&P 500 up 2.0% and the Nasdaq 100 3.0%.

Telsa Inc (NASDAQ: TSLA) was among the leaders recovering 11% after yesterday missing out on a position in the S&P 500. Investors were expecting Tesla’s addition, which would force ETF providers around the world to increase their stakes, but were left disappointed.

The rally was broad-based but with cyclical airline and consumer sectors feeling the rotation back into technology. Tiffany & Co. (NYSE:TIF) fell 6.4% after announcing it would be suing LVMH (EPA: MC) for pulling out of their $16 billion deal; a sound decision in my view given the changing nature of the economy post COVID.

Athleisure wear provider Lululemon Athletica Inc (NASDAQ: LULU), popular among stay at home workers, fell 7.5% despite growing revenue 3% to US$903 million following a 160% increase in online sales.

In other news, the European Central Bank will meet again overnight.

This article was written by Drew Meredith, Financial Adviser and Director of Wattle Partners. To get in contact with Drew, click here to visit the Wattle Partners website.

[ls_content_block id=”695″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Disclosure: At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.