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S&P/ASX 200 to rise – IFT, GEM & ADH shares in focus

The S&P/ASX 200 (ASX: XJO) is set to open higher on Wednesday. Here’s what ASX investors need to know.

ASX 200 higher, Australian Super on the prowl

The ASX 200 managed to deliver another positive day on Tuesday in what has become an incredible end to the year. Yet the story changes on a weekly basis, with last week’s winners becoming this week’s losers.

Yesterday it was the consumer staples, up 1.1%, and healthcare, up 0.8%, sectors pushing the market higher with Woolworths Group Ltd (ASX: WOW) benefitting from Metcash Limited’s (ASX: MTS) strong update on Monday.

As flagged in this column, corporate activity continues to accelerate with Australian Super once again on the prowl, announcing a full takeover offer for New Zealand renewable energy and data centre provider Infratil Ltd (ASX: IFT) at NZ$7.43; a 39% premium to the last traded price.

The deal seems complex but continues the trend of huge Australian pension funds blurring the lines between ‘private’ and public markets like the ASX through which the fund can exert control. Infratil owns assets including Wellington Airport and Vodafone New Zealand, with several part-owned by the Commonwealth Super Corporation and the Future Fund. The Infratil share price finished 21% higher on the news.

Underpayment highlights ESG concerns at G8 Education

Childcare centre operator G8 Education Ltd (ASX: GEM) slumped 6.6% despite announcing a significant improvement in occupancy levels to 75.5% of its total. The company, which cares for as many as 58,000 children across the country, flagged a significant underpayment of staff, between $50 million and $80 million, that will require remediation or repayment. Interestingly, the company reported ‘wage efficiencies’ as a key contributor to its expected $98 million in earnings.

Linen and bedding seller Adairs Ltd (ASX: ADH) was one of the leaders, delivering a trading update and jumping 2.8% after flagging earnings growth guidance of 300% for the half-year to $66 million. Same-store sales for the first 23 weeks of the financial year increased 17.3% but it was the higher-margin online sales driving the recovery, up 99.7% for the financial year to date.

It was clearly an interesting time for the listing of the Dalrymple Bay Coal Terminal (ASX: DBI), which fell 16% on its first day of trading despite the attractive 7% yield on offer.

US markets higher, first vaccine deployed in the UK

Global markets continued their positive run, with the S&P 500 and Nasdaq both finishing higher overnight, 0.3% and 0.5% respectively.

The strength continued after the UK Government began its deployment of the AstraZeneca (LON: AZN) vaccine ahead of what many expect to be the US Food and Drug Administration’s decision to offer emergency use authorisation to the one produced by Pfizer (NYSE: PFE). Whilst efficacy in combatting the virus has been strong, there remain questions over whether the drugs can stop its spread, suggesting it may take some time for a return to normal.

The Australian Government is set to pass world-first laws this week requiring tech giants Google (NASDAQ: GOOGL) and Facebook (NASDAQ: FB) to ‘pay their way’ for journalistic content on their newsfeeds. The sheer dominance in these businesses is reflected in their share of online advertising spend, with Google attracting $53 and Facebook $28 of every $100 spent.

Sticking with digital media, game designer Activision Blizzard (NASDAQ: ATVI) reported that its latest ‘World of Warcraft’ game sold 3.7 million units in a single day, the fastest-selling PC game ever.

Looking ahead, the week sees the long-awaited float of Airbnb and judgement day for the UK’s Brexit negotiations with the EU.

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.


Disclosure: At the time of publishing, Drew does not have a financial or commercial interest in any of the companies 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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