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S&P/ASX 200 today – Disney & ASX mining shares in focus

The S&P/ASX 200 (INDEXASX: XJO) is set to rebound on Thursday according to data from the Sydney Futures Exchange. Here’s what’s making headlines.

Stock market recap

The ASX 200 finished down another 0.7% on Wednesday, pushed lower by healthcare (-1.7%), industrials (-1.5%) and consumer staples (-1.2%). Cochlear Limited (ASX: COH) was the biggest detractor, falling 2.8% as investors once again flocked to the mining sector as gold prices maintained all-time highs above US$2,000.

It is becoming apparent that the Chinese and their insatiable demand for Australian commodities may once again cushion the blow to our economy. Chinese exports from Australia reached close to 50% in June, with investors having identified the trend and pinning dividend hopes on the likes of BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG). In an income starved world, this strategy has some merit, whilst keeping in mind these are the most cyclical of businesses.

The US market continued its recovery, the S&P 500 adding 0.6% and nearing an all-time high, after the White House scheduled a catch-up meeting with the Chinese regarding their trade deal and it became more likely that a second round of stimulus would be agreed before the end of the week.

Disney shares pop

One of my personal favourites, Walt Disney Co (NYSE: DIS), rallied 8.8% overnight after announcing better than expected subscribers on its Disney+ platform. It seems families stuck at home around the world are turning to Toy Story, Cars and Star Wars to keep the kids entertained.

Despite beating internal expectations that saw streaming subscribers hit 60.5 million, profit fell 147% for the business, as its theme parks (85% revenue decline), media movie studios (55% decline) and media networks (2%) all declined in unison.

Things are, however, looking up with the NBA basketball and MLB baseball seasons restarting, benefitting Disney’s ESPN sports channel, theme parks slowing re-opening and movie theatres expected to restart at the end of 2020. In my view, the pandemic is offering a buying opportunity for a world-class content and advertising business.

Trouble for ASX BNPL shares?

The ASX buy now, pay later (BNPL) sector has been on fire lately, with those who missed out either cursing themselves or flagging concerns about the lack of regulation. It seems that ASIC has their eyes on the sector, but have been hamstrung by the pandemic, amid concerns about overcommitment, penalty and missed payment fees heaped onto unwitting customers.

In a similar vein, brokers are increasingly concerned about the major banks’ ability to deliver competitive returns for investors, with some 10-15% of consumer and small business loans deferred along with $274 billion residential mortgages. I’m not sure that most borrowers on ‘holiday’ know their interest is still compounding and repayments have simply been delayed.

Finally, Telstra Corporation Ltd (ASX: TLS) announced another asset sale, bringing the total to $1.5 billion, after passing its Victorian data centre to Centuria Industrial REIT (ASX: CIP) on a 30-year lease with a price of $416.7 million. The Telstra share price finished 2.3% lower yesterday.

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.

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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.

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.


Drew Meredith is the author of this post. He may maintain positions in the 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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