The S&P/ASX 200 (ASX: XJO) managed to deliver another 0.4% gain on Wednesday, with the materials sector the only detractor, falling 1.0%.
The fall came despite the iron ore price hitting a record of US$193, marking a long recovery from the US$50 lows of 2015.
JB Hi-Fi CEO stepping down
JB Hi-Fi Limited (ASX: JBH) was among the largest detractors, falling 4.0% after its long-standing CEO, Richard Murray, announced he would be stepping down to join Solomon Lew-backed Premier Investments Limited (ASX: PMV), which added 2.2%.
The departure comes after 18 years in the business, with Murray set to be replaced with his predecessor Terry Smart who ran the business last decade.
Link deal pulled
Administration services provider Link Administration Holdings Ltd (ASX: LNK) fell 6.3% after the private equity consortium led by Pacific Equity Partners scrapped their bid for the company.
The board remains hopeful of the successful sale of their PEXA property settlement platforms, with initial indications suggesting it is more valuable than the private equity group estimated.
Inflation remains muted
Muted inflation figures were the key drivers behind the market’s afternoon recovery, with the headline rate printing at just 0.6%.
This was well below the 0.9% expected by economists, with the primary contributor being an 8% increase in fuel prices.
Whilst a positive for those worried about the impact of inflation and higher interest rates, this is also backward-looking data covering the March quarter alone.
Coles sales down 6.1%
The cycling of strong 2020 figures saw Coles Group Ltd (ASX: COL) report a 6.1% fall in quarterly sales to $7.7 billion as shopping conditions returned to normal.
That said, liquor and express sales, the latter being smaller stores in larger cities, both grew sales at 2.6% and 7.4%, respectively.
Ansell’s positive update
Ansell Limited (ASX: ANN) has avoided the ‘cycling’ issue with management flagging yesterday that second-half growth will exceed the 24.5% delivered in the first half.
The sale of PPE and surgical equipment remains strong as the pandemic continues. However, the company has flagged rising raw material costs as a potential risk. Ansell shares rose 3.9% on the news.
Kogan issued please explain
Finally, Kogan.com Ltd (ASX: KGN) was hit with a please explain from the ASX following the company’s rather opaque third-quarter report.
Responding to the ASX’s questions, Kogan released more detailed results, breaking down performance across the core business and the acquired Mighty Ape business. The Kogan share price finished the day 7.1% higher.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher on Thursday despite a weak lead from US markets overnight. For all the latest, check out Rask Media’s US stock market report.
