ASX closes much lower after weak results from Woolies and Corp Travel
Wisetech jumps after strong half results
Australia’s wage growth beats inflation
The ASX 200 closed -0.8% lower on Wednesday, tracking the selloff on Wall Street.
The Tech sector led, buoyed by a strong performance by Wistech (ASX:WTC), however the gains were offset by losses in Staples, Mining and Energy stocks.
Staples were dragged by the the fall in Woolworths (ASX:WOW) shares – see more below.
Mining stocks were also weaker, dragged down by BHP and Rio Tinto, which were down -3% each.
Meanwhile, today’s ABS data shows that Australia’s wage growth has overtaken inflation for the first time in three years. The wage price index (WPI) rose by 4.2% in the 12 months to December, versus the CPI rate of 4.1%.
Across the region, China stocks rallied after policymakers took further steps to rescue its battered stock market. China’s banks have cut their 5-year mortgage loan prime rate by a record 25 basis points.
Looking ahead to tonight’s session on Wall Street, the market’s focus will be on Nvidia Corp’s much anticipated earnings release.
BIG CAP WINNERS
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Code Name Price % Change Volume Market Cap LTR Liontown Resources 1.03 -7.40 11800466 $2,701,874,659 FBU Fletcher Building 3.70 -6.09 658295 $3,085,191,768 CSL CSL Limited 289.51 -5.08 709946 $147,343,443,385 IGO IGO Limited 6.90 -3.57 2157437 $5,414,464,863 NIC Nickel Industries 0.63 -3.46 3691387 $2,785,776,422 IFL Insignia Financial 2.23 -3.26 848886 $1,533,241,532 SGR The Star Ent Grp 0.53 -3.18 10386275 $1,577,774,482 SKC Skycity Ent Grp Ltd 1.91 -3.05 236734 $1,497,604,262 SQ2 Block 102.27 -2.78 57993 $3,731,605,362 HLS Healius 1.42 -2.75 987752 $1,056,427,548 DYL Deep Yellow Limited 1.47 -2.65 3239154 $1,154,715,624 FPH Fisher & Paykel H. 22.43 -2.61 150839 $13,448,683,596 LFG Liberty Fin Group 4.20 -2.55 30236 $1,309,394,693 CMW Cromwell Prop 0.41 -2.41 639801 $1,086,829,680
WiseTech (ASX:WTC) jumped 10% after reporting total revenue for the half of $500.4 million, up 32% on the pcp. Underlying NPAT was $128.4 million, up 5% on pcp. Interim dividend was declared at 7.70cps, up 17% on pcp. The company reconfirmed its FY24 guidance range for revenue of $1.04 billion–$1.095 billion, representing revenue growth of 27%–34%.
Wisetech has also increased its full year EBITDA margin guidance range to 44%-46%, due to H1 EBITDA margin strength.
National Australia Bank (ASX:NAB) rose 1% despite cash earnings tumbling almost 17% in the December quarter to $1.8 billion, due mainly to impairment charges. The bank’s revenue increased 1%, and statutory NPAT was $1.7bn. The bank’s net interest margin was slightly higher.
Domino’s Pizza Enterprises (ASX:DMP) rose 3% as its Australia and NZ markets delivered their strongest growth in six years. Same store sales were up +1.25%. EBIT fell -5.3% to $107.9m vs the pcp. The company will pay an interim dividend of 55.5 cents per share (unfranked).
Scentre Group (ASX:SCG) released its results for the 12 months to 31 December, with Funds From Operations (FFO) of $1.094 billion (21.11 cents per security), up 5.2% on the previous year. Distributions for the period were $860.6 million (16.60 cents per security), up 5.4% and above guidance.
BIG CAP LOSERS
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Code Name Price % Change Volume Market Cap WTC Wisetech Global Ltd 88.57 10.92 1,187,096 $26,624,014,517 COH Cochlear Limited 338.86 2.59 116,508 $21,633,354,189 SCG Scentre Grp 3.06 2.68 6,715,879 $15,467,327,450 LYC Lynas Rare Earths 5.92 2.78 2,417,059 $5,383,839,375 AUB AUB Group Ltd 31.45 3.11 493,513 $3,306,371,410 CSR CSR Limited 7.95 17.43 4,323,643 $3,231,886,884 ILU Iluka Resources 7.52 4.30 3,994,955 $3,071,692,897 VNT Ventiaservicesgroup 3.52 4.76 6,168,877 $2,874,427,735 DEG De Grey Mining 1.26 3.06 3,276,726 $2,267,800,268 CDA Codan Limited 9.66 15.00 1,050,197 $1,523,055,349 MMS McMillan Shakespeare 21.01 7.74 511,136 $1,358,038,968 RDX Redox Limited 2.52 3.07 159,686 $1,281,198,684 MAD Mader Group Limited 6.80 8.11 253,897 $1,258,000,000
Corporate Travel (ASX:CTD) sank -20% despite tripling its net profits in H1. The company’s statutory NPAT rose 222% on pcp to $50.4m. The company said that macro issues seen in the first half have largely dissipated and are unlikely to impact the second half.
Woolworths Group (ASX:WOW) tumbled as first half F24 result was mixed. Group sales were 4.4% higher and group NPAT was 2.5% higher to $929m. But BIG W had a challenging first half. H1 EBIT for Big W was $54 million, down 60% on the prior year.
Santos Ltd (ASX:STO) has delivered a record dividend to shareholders despite underlying annual profit falling by 42%. The oil producer says production guidance for 2024 is between 84 to 90 million barrels of oil equivalent (mmboe). Sales volume is expected to be between 87 to 93 mmboe.
The post ASX Large Caps: Woolies, Corp Travel sink on results; WiseTech jumps on bullish guidance appeared first on Stockhead.
