The S&P/ASX 200 (ASX: XJO) broke a three-day losing streak to finish 0.5% higher on Thursday. However, a late sell-off in the ASX banking sector meant gains of as much as 1.2% were reversed.
The financials and energy sector were the primary drags, down 0.9% and 0.5% as investors seek out higher quality, less cyclical businesses.
ASX tech platforms jump
The ASX tech sector was once again the standout, jumping over 4% and the industrial sector gaining on another strong report from investment platforms Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL).
These stocks finished 15% and 8% higher, respectively, after reporting record inflows on their administration, reporting and super platforms.
In the case of Netwealth, the group reported $4 billion in inflows in the September quarter, taking the total to $52 billion and now expects a total of $12.5 billion over the full year.
It was a similar story for Hub24, reporting $3 billion in inflows, a quarterly record taking funds under administration to $63.2 billion; this doubled the group’s market share.
Despite the positive news, analysts have begun to suggest the record inflows may begin to slow giving growing pressure on the financial advice sector.
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Redbubble struggles post-pandemic
Popular day trading stock Redbubble Ltd (ASX: RBL) slumped another 12% after reporting first-quarter results, revealing a 34% fall in gross profit in the September quarter.
As highlighted previously, the company benefitted from a massive spike in demand for masks during the pandemic, a trend that was clearly ‘transitory’ and not justifying the high multiple.
A2 Milk on the up, South32 buys copper
A2 Milk Company Ltd’s (ASX: A2M) recovery continued, jumping 4.3% as signs that the Daigou channel is beginning to improve buoyed sentiment.
Meanwhile, shares in diversified miner and ex-BHP unit South32 Ltd (ASX: S32) jumped close to 5% after announcing the purchase of a 45% stake in Sierra Gorda, a copper mine in Chile for US$1.55 billion. This marks another ASX miner seeking to position itself for a battery boom.
Unemployment pain
The lingering pain of the pandemic lockdowns was on show on Thursday with the economy losing 138,000 jobs in September, taking the total losses since August to $280,000.
There are 110,000 fewer people in work but more concerningly, the participation rate dropped by 0.7%, for the third consecutive month, suggesting many are giving up on finding work.
ASX 200 today
The ASX 200 is expected to push higher when the market opens on Friday, following a strong lead from US markets overnight. All three US benchmarks finished higher, with the S&P 500 and Nasdaq gaining 1.7% each. To find out more, check out my US stock market report.
