ASX 200 (XJO) set to open higher on Wednesday – your ASX morning report

The S&P/ASX 200 (INDEXASX: XJO) is tipped to rise when the market opens this morning, according to the latest SPI futures. Here’s your daily ASX morning report.

ASX 200 boosted by trifecta of COVID-19 vaccines

The ASX 200 saw another strong day, adding 1.3% on the back of the ‘trifecta’ of COVID-19 vaccines, with hopes for an economic recovery resulting in the oil price hitting a nine-month high. As can be expected, ASX energy shares benefitted most, the sector up 3.5% on the news.

The Beach Energy Ltd (ASX: BPT) share price increased 8.2%, whilst Origin Energy Ltd (ASX: ORG), which looks to be key to a gas lead recovery, added 5.2%. Santos Ltd (ASX: STO) also received approval for its controversial Narrabri gas exploration program, the share price improving 3.9% on the news.

Domestically, it was news of the Queensland border reopening that spurred a recovery in the travel sector, with the Webjet Limited (ASX: WEB) share price adding 4.7% on the news.

The gold sector remains under pressure with the AUD hitting a 3-month high of $0.74 against the USD, sending Newcrest Mining Limited (ASX: NCM) shares down 6.1%. Despite the current rotation, gold bullion, as opposed to gold stocks, should continue to play a key role as the threat of inflation rises in the coming years.

Featured video: Interview with Luke Trickett, Blue Stamp Company

Brickworks shares rally, TechnologyOne reports

Brickworks Limited (ASX: BKW) delivered one of the strongest updates of AGM season, reporting a 93% increase in net profit to $299 million, despite underlying profit falling 38% to $146 million due to 2019’s property gains. Back in September, management elected to increase the dividend by 4% on the back of the incredible success of Brickworks’ partnership with Goodman Group (ASX: GMG).

The company has partnered with Goodman to build custom distribution centres for the likes of Amazon (NASDAQ: AMZN), with its stake now valued at $727 million of a $2.0 billion asset base. Management now estimates the property asset backing of Brickworks shares is $25.24, well above the current Brickworks share price but importantly, its domestic building products division is ahead of 2019 volumes. Brickworks shares finished 4.0% higher.

TechnologyOne Limited (ASX: TNE) released its FY20 results, flagging the potential for a special dividend despite increasing its ordinary dividend by 8% on 2019 levels. The company reported strong demand for its enterprise management platform, as councils, governments and corporate sought to digitise. Underlying profit increased 13% to $86.1 million on the back of a 32% increase in recurring revenue to $134.6 million.

US markets post strong gains

The Dow Jones Industrial Average, a 30-stock index with a traditional focus on more cyclical, old fashioned companies, reached an all-time high of 30,000 points on Tuesday, with the 124-year-old Boeing Inc. (NYSE: BA) a key contributor.

The rally came on news of a third vaccine candidate, the fastest annual growth rate in US home prices in September at 7%, and confirmation that the White House had begun the process of transition to a Democratic president.

The S&P 500 and Nasdaq also added 1.6% and 1.5%, respectively, with growing confidence that the worst is over despite the threat of the impending Thanksgiving Day being a super spreader event for COVID-19.

In a sign that not all Chinese companies are losers from the trade war, smartphone maker Xiaomi (HKG: 1810) reported a 35% increase in sales in the third quarter, with the majority outside China, as the company grew market share at Huawei’sexpense. According to analysts, global shipments of Xiaomi’s phones increased 42%, well ahead of Apple (NASDAQ: AAPL) and Samsung (KRX: 005930).

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