ASX falls heavily after US CPI print higher than expected
Rates sensitive sectors, gold miners fell
CBA, Domain, Fletcher Bulding also dumped
The ASX 200 fell by around -1% on Wednesday, tracking the selloff on Wall Street overnight.
Stocks fell across the broad after the US January CPI unexpectedly came in at a higher rate than forecast.
Traders globally were unsettled after the US CPI print came in at 3.1%, the highest reading in 8 months, potentially crushing hopes of a near term Fed rate cut.
“The Fed will view this as another reason to wait until May or June, but the direction of trend is still lower,” said Charles Schwab’s chief fixed-income strategist, Kathy Jones.
On the ASX, Industrials was the only sector in the green today. All other sectors fell, led by rates sensitive sectors Tech and Real Estate.
Gold miners also came under pressure after gold price retreated by around 1% last night to below US$2k an ounce.
Among the advancers today were education company IDP Education, which said it was seeing record student growth during the half.
Across the region, China is still closed for Lunar New Year, but Japan shares fell, with the Yen sliding to 150.60 vs the USD.
This comes as swap traders decreased their bets for a Fed cut before July following the latest CPI release overnight.
BIG CAP WINNERS
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Code Name Price % Change Volume Market Cap DOW Downer EDI Limited 4.87 12.99 5,006,496 $2,894,482,556 AMP AMP Limited 1.08 11.60 34,761,547 $2,658,848,477 IEL Idp Education Ltd 22.28 10.08 2,807,235 $5,633,524,911 MEZ Meridian Energy 5.34 5.74 47,042 $6,393,676,573 SVW Seven Group Holdings 38.08 4.76 1,069,027 $13,216,336,087 CPU Computershare Ltd 26.20 4.55 1,138,164 $14,943,741,034 BGL Bellevue Gold Ltd 1.39 4.32 9,193,767 $1,565,864,662 ERA Energy Resources 0.06 3.57 96,906 $1,240,304,755 PSI Psc Insurance Ltd 4.69 2.63 1,134,822 $1,666,329,994 TPW Temple & Webster Ltd 11.29 2.54 2,329,243 $1,353,676,219 HSN Hansen Technologies 5.45 1.97 178,720 $1,085,106,092 LTR Liontown Resources 1.06 1.93 6,072,878 $2,508,062,221 AD8 Audinate Group Ltd 19.63 1.92 479,706 $1,600,676,181 AX1 Accent Group Ltd 2.36 1.72 1,142,093 $1,306,283,415 EBO Ebos Group Ltd 34.43 1.70 15,866 $6,493,145,081 JHX James Hardie Indust 54.95 1.40 761,524 $23,609,865,199
IDP Education (ASX:IEL) reported record revenue of $579 million for H1, up 15% on pcp, driven by strong student placement revenue growth of 44%. Net Profit After Tax (NPAT) was $107 million, up 23% on pcp. The company said it saw record student placement volumes of 57,300 during the half, up 33% on pcp.
Downer EDI (ASX:DOW) surged after underlying EBITA, which exclude significant items, rose 12.6% for the half to $150.5 million.
AMP (ASX:AMP) rose after reporting underlying NPAT growth of 6.5% vs pcp to $196million. Underlying earnings per share was 6.8cents for the period. Final dividend was 2.0 cents per share declared, with 20%franked. AMP has also appointed non-executive director and former Adelaide & Bendigo Bank (ASX: BEN) MD Mike Hirst as chairman, effective at the end of the 12 April AGM.
BIG CAP LOSERS
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Code Name Price % Change Volume Market Cap GNC GrainCorp Limited 7.21 -12.18 3,188,925 $1,841,806,745 FBU Fletcher Building 3.405 -7.97 4,132,056 $2,897,261,305 GUD G.U.D. Holdings 11.08 -7.74 2,677,363 $1,692,145,299 CQE Charter Hall Soc In 2.655 -5.52 554,823 $1,044,130,628 SEK Seek Limited 24.23 -5.43 1,806,093 $9,126,361,268 360 Life360 Inc. 7.405 -4.82 347,009 $1,590,757,072 SQ2 Block 100.92 -4.80 60,029 $3,760,694,785 DHG Domain Holdings Aus 3.32 -4.05 2,827,482 $2,185,533,749 LNW Light & Wonder Inc. 130.695 -4.04 22,673 $2,116,351,463 CRN Coronado Global Res 1.465 -3.93 1,606,349 $2,556,591,938 MCY Mercury NZ Limited 6.2 -3.88 1,016 $8,973,415,692 NST Northern Star 12.81 -3.76 1,587,445 $15,296,133,054 BPT Beach Energy Limited 1.7575 -3.70 6,571,027 $4,163,433,922 JDO Judo Cap Holdings 1.155 -3.35 843,455 $1,325,614,495 PRU Perseus Mining Ltd 1.625 -3.27 4,782,623 $2,307,587,446 NEM Newmont Corporation 49.73 -3.19 297,526 $8,740,930,004 BOQ Bank of Queensland. 5.84 -3.15 2,201,773 $3,977,898,934
Graincorp (ASX:GNC) was the biggest large cap loser today, down 12% after flagging a big drop in earnings. GNC expects to report FY24 Underlying EBITDA in the range of $270–$310 million, down from $565 million in FY23. ) FY24 Underlying NPAT is expected to be between $65–$95 million, down from $250 million in FY23.
Commonwealth Bank (ASX:CBA) fell after NPAT for H1 decreased by 8% on pcp to $4.837b. Net interest margin (NIM) decreased by 11 basis points to 1.99% due mainly to increased competition. The interim dividend declared was 2% higher at $2.15 per share, fully franked. The dividend payout ratio is 72% of cash NPAT.
Domain Holdings (ASX:DHG) delivered revenue of $202.2 million for the half year, up 11% on pcp. EBITDA was $68.4 million, up 32% on pcp. Domain expects EBITDA margin expansion in FY24, supported by improved listings.
GUD Holdings (ASX:GUD)’s underlying EBITA increased 11.6% vs pcp to $98 million. Statutory NPAT was $51.4 million, which increased by 19.5% vs pcp. The company reported interim dividend of 18.5 cents per share, an increase of 8.8% on the pcp.
Plumbing supplies business Fletcher Building (ASX:FBU) announced a net loss of NZ$120 million for the half, versus the previous half-year’s net profit of $92 million.The company has however denied that it has put its Iplex business up for sale, as reported by a certain media.
The post ASX Large Caps: ASX tumbles as Graincorp sinks 12pc; Downer and AMP shine appeared first on Stockhead.
