ASX 200 (XJO) Friday – ASX delivers longest winning streak since July

The S&P/ASX 200 (INDEXASX: XJO) could extend its winning streak on Friday, with ASX futures pointing to a positive open. Here’s what you need to know.

ASX 200 continues to push higher

The ASX 200 has delivered its longest winning streak since July, finishing 1.1% higher on Thursday as the budget stimulus continues to reverberate through markets. The announcements have been well received by the corporate sector, despite several shortcomings.

But a reminder of the long road ahead came from the Transurban Group Ltd (ASX: TCL) AGM, during which management provided a third-quarter update. Average daily toll road traffic was down 25.2% in the September quarter, with Sydney the only improver, growing 1.5%. Melbourne’s lockdowns continued to bite, pushing traffic down 58.6%, Brisbane a more muted 9.1% and North America falling 28.2%.

Rather than a dilutive capital raising, the company flagged the partial sale of the Washington toll road, in an effort to assuage lender concerns. The Transurban share price fell 1.0% on the news and is 40% off its March lows despite the weakness. To me, this suggests limited upside even in the event of a vaccine.

Elsewhere, iSelect Ltd (ASX: ISU) settled a case with the ACCC for $8.5 million, arising from queries around the competitiveness of its comparisons. The iSelect share price rallied 13.3% on the news.

Featured video: ASX small-cap chat with Andrew Page

Netwealth share price jumps

The Reserve Bank of Australia remains under pressure to do more, the latest comments from bond manager, Charlie Jamieson cutting to the core. Speaking at a conference, Charlie suggested that “the RBA are a tremendously reactionary central bank” and highlighted that “they couldn’t have done a worse job at predicting what might occur”. The same could be said for the majority of Australian economists in recent years.

Global pallet distributor Brambles Limited (ASX: BXB) reiterated guidance for 2021, with sales to grow by up to 4% and underlying profit closer to 5% – all going well. Brambles shares finished 0.9% higher.

Meanwhile, superannuation platform provider Netwealth Group Ltd (ASX: NWL) rallied 8.3% after announcing a September 2020 update. The company revealed an 8% increase in funds under administration to $34 billion in the month. The growth is being driven by managed accounts, allowing advisers to outsource investment implementation, which is now $6.5 billion compared to just $3.4 billion in 2019. The group also announced the launch of its own suite of funds with Magellan Financial Group Ltd (ASX: MFG), adding another string to its bow.

Will she or won’t she, stimulus talks gather steam again

The daily volatility continues, with signs the Democrats will relent on a new stimulus package boosting markets to five-week highs. The S&P 500 finished 0.8% higher and the Nasdaq 0.4%.

It appears markets are becoming more optimistic about a Biden victory with the additional stimulus spending it provides to boost the domestic economy; only time will tell.

Signs of progress on both COVID-19 treatments and vaccines shot the energy sector higher, oil jumping over 3% on the news. The combination of oil, cruise and travel companies will be the key beneficiaries from a real vaccine, but remain well below 2019 highs.

Merger activity has spiked in recent months with Morgan Stanley (NYSE: MS) announcing the acquisition of fund manager Eaton Vance (NYSE: EV), which jumped 48% on the news.

Finally, McDonald’s Corp (NYSE: MCD) announced that sales continued to recover in September, 4.6% higher which should be good news for Australia’s Collins Food Ltd (ASX: CKF).

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.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. 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. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

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

feedback-icon

What can we do better?

Howdy, ASX investor.

I really care about your experience today.

Please, let me know if you have any suggestions we can use to improve our site and help others invest in ETFs. 

Cheers! 

Owen Rask