The S&P/ASX 200 (ASX: XJO) started the final week of April on a negative note, falling 0.2% on Monday.
The materials sector was the only positive, jumping 0.4% as weaker Brazilian supply is expected to support an elevated iron ore price for the foreseeable future.
Fortescue upgraded
A stock broking house upgraded Fortescue Metals Group Limited (ASX: FMG) on this basis, expecting record dividends to continue, sending the share price 4.8% higher in the session alone. Rio Tinto Limited (ASX: RIO) also benefitted, adding 1.1%.
A2 Milk still lagging
Utilities and staples were among the weakness, suggesting more defensive income streams are being sold in favour of cyclical assets, falling 1% respectively; A2 Milk Company Ltd (ASX: A2M) was a key detractor, falling 3.1%.
Perpetual reports strength
Value fund manager Perpetual Limited (ASX: PPT) added 4.4%following last week’s announcement that highlighted strong assets under management growth, up 4%, and continued inflows into its cash and fixed income strategies.
Westpac flags write-down
Westpac Banking Corp (ASX: WBC) has pre-reported a $282 million write-down due to provision on customer refunds, capitalised software and the break up with IOOF.
NIB sends health insurers higher
Health insurer NIB Holdings Ltd (ASX: NHF) led the ASX 200, jumping 10.2% after upgrading earnings expectations on the back of a strong start to 2021.
Management confirmed that its core health insurance business is performing well, with members growing 3.7% since June 2020, delivering underlying operating profit of $140.9 million for the nine months to 31 March.
This resulted in the company’s full-year outlook being increased to between $200 million and $225 million.
Funds flow into Mainstream
Fund administration group Mainstream Group Holdings Ltd (ASX: MAI) announced that its assets under administration moved beyond $272 billion after signing major player Pendal Group Ltd (ASX: PDL) onto its administration service, contributing to $41.7 billion of inflows during the quarter.
Kogan continues to fall
Kogan.com Ltd (ASX: KGN) continues to send the retail sector down, falling 4.1% and dragging JB Hi-Fi Limited (ASX: JBH) down the same amount as investors focus on the prospect of falling margins and increasing product costs.
ASX 200 today
Looking ahead, the ASX 200 is expected to edge higher when the market opens on Tuesday, following a mostly positive lead from US markets overnight. For all the latest, check out Rask Media’s US stock market report.
