The S&P/ASX 200 (ASX: XJO) continued its strong recent run, gaining another 0.5% on Wednesday behind the technology, financials and industrial sectors which all finished around 1% higher.
The growing momentum behind city and border reopenings is clearly boosting confidence despite the threat of staff shortages and the ‘great resignation’ that lies ahead.
Despite the positivity, Flight Centre Travel Group Ltd (ASX: FLT) was among the biggest detractors, falling 4.8% with investors not impressed by the weaker outlook provided at its AGM.
Kogan inventory cools
Kogan.com Ltd (ASX: KGN) was on the other side of the ledger, gaining 6.7% after highlighting an improvement in the inventory issues that beleaguered the company in 2020.
Sales in the September quarter were more than 20% higher year on year. However, the increase in inventory saw gross profit decline 1.7% as price cuts were required. Inventory has been reduced following the closure of overflowing warehouses, down to $191 million from $227 million.
Active customers continue to grow, moving 30% higher to 3.35 million Australians. Kogan First, aimed at the Amazon Prime style US customer, has seen its membership base nearly double, hitting 210k. The company is showing positive signs of a turnaround after a difficult period.
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Challenger share price jumps
Shares in annuity and fund manager Challenger Ltd (ASX: CGF) rallied by 3% after the company announced the sale of its non-core SMSF auditing platform Accurium to Count Plus.
However, the deal was for just $9 million, hence it is immaterial to the Challenger share price, with investors likely positioning in Challenger as a hedge against higher interest rates.
BHP ups the ante
BHP Group Ltd’s (ASX: BHP) battle with Fortescue’s (ASX: FMG) Twiggy Forrest continues, with the group increasing its bid for Canadian nickel explorer Noront Resources by $128 million as its pivot to green energy related commodities continues. BHP shares were 0.5% higher.
Origin positive on electricity prices
Origin Energy Ltd (ASX: ORG) continued its recent recovery with its AGM highlighting that gains in crude oil and LNG prices due to the global energy crisis have “brightened the profit outlook” for the group. Whilst not an outright upgrade of August’s profit guidance, it is clearly moving in the right direction.
Super Retail cycles strong comps
It’s not all easy going for pandemic winners, with Super Retail Group Ltd (ASX: SUL) highlighting the impact of lockdowns and strong comparables on group sales, reporting a 12% fall in the first quarter compared to last year.
Naturally, online remains resilient, doubling and now hitting 30% of total sales for the owner of Rebel Sport, BCP and Supercheap Auto.
ASX 200 today
Looking ahead, the ASX 200 is expected to edge higher when the market opens on Thursday, following a mostly positive lead from US markets overnight.
Netflix (NASDAQ: NFLX) shares are making headlines as the market digests the streaming giant’s quarterly results, while a potential takeover play by PayPal (NASDAQ: PYPL) has sent the Pinterest (NYSE: PINS) share price soaring. To find out more, check out my US stock market report.
