ASX closes higher as unemployment rises. Picture Getty
ASX Large Caps: Another win day for ASX, but BHP down after revealing impairments worth billions
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- ASX closes higher as unemployment rises
- Altium to be acquired by Japanese firm
- Japan’s economy slips to third place behind Germany
The ASX 200 climbed by around +0.7%, tracking Wall Street’s moves overnight.
Stocks rose after Australia’s unemployment rose to 4.1% in January from 3.9% in December. The figure was higher than the 4% expected by the market, and was a two-year high.
“The swift weakening in labour market conditions raises some doubts as to whether we will see an orderly easing in conditions in 2024,” Oxford Economics Australia head, Sean Langcake, told news.com.au.
The Aussie dollar and bond yields both fell after the ABS release.
On the ASX, Energy and Miners lagged, while Tech and Real Estate led.
Biggest mover today was Tech company Altium, which announced that it will be acquired by a Japanese firm – see more below.
Across the region, bad news in Japan as it loses its spot as the world’s third largest economy to Germany.
Japan’s economy slipped into recession after GDP contracted by 0.4% in the final three months of last year. However, its Nikkei stock market index is at a 34-year high.
Looking ahead to tonight, the weekly new unemployment claims data are anticipated in the US.
BIG CAP WINNERS
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ALU | Altium Limited | 65.89 | 28.53 | 2,497,764 | $6,762,569,716 |
| GMG | Goodman Group | 28.43 | 6.88 | 5,290,633 | $50,518,243,089 |
| BFL | Bsp Financial Group | 6.98 | 6.40 | 2,611 | $3,064,963,062 |
| TPW | Temple & Webster Ltd | 12.03 | 6.18 | 710,668 | $1,393,020,124 |
| DOW | Downer EDI Limited | 5.07 | 5.85 | 3,187,388 | $3,216,837,922 |
| XRO | Xero Ltd | 118.09 | 5.83 | 445,968 | $16,924,802,195 |
| 360 | Life360 Inc. | 7.80 | 5.69 | 478,224 | $1,508,970,076 |
| GQG | GQG Partners | 2.14 | 5.42 | 1,206,396 | $5,995,360,292 |
| CHC | Charter Hall Group | 12.31 | 4.55 | 740,322 | $5,567,177,032 |
| WTC | Wisetech Global Ltd | 78.37 | 4.51 | 348,942 | $25,003,567,296 |
| WES | Wesfarmers Limited | 61.54 | 4.41 | 2,047,556 | $66,848,408,647 |
| SVW | Seven Group Holdings | 40.62 | 4.39 | 1,292,096 | $14,147,115,190 |
| PNI | Pinnacle Investment | 11.19 | 4.38 | 355,111 | $2,176,922,674 |
| SQ2 | Block | 104.84 | 4.31 | 92,326 | $3,565,582,802 |
| AMP | AMP Limited | 1.12 | 4.21 | 30,677,965 | $2,932,956,567 |
| BRG | Breville Group Ltd | 25.93 | 4.05 | 228,543 | $3,574,159,672 |
| DHG | Domain Holdings Aus | 3.52 | 3.99 | 1,014,642 | $2,135,001,177 |
| LNW | Light & Wonder Inc. | 135.14 | 3.95 | 53,511 | $2,020,012,410 |
| MFG | Magellan Fin Grp Ltd | 9.28 | 3.92 | 2,278,341 | $1,616,638,094 |
| NXT | Nextdc Limited | 14.65 | 3.61 | 1,022,397 | $7,277,968,264 |
| JBH | JB Hi-Fi Limited | 64.02 | 3.60 | 722,668 | $6,755,746,686 |
| ORI | Orica Limited | 16.82 | 3.57 | 785,672 | $7,417,615,696 |
Altium (ASX:ALU) soared by almost 30% today after announcing that it will be acquired by Japanese company, Renesas Electronics Corporation, for a cash price of $68.50 per share. Altium is a global leader in electronics design systems, while Renesas is the leading global provider of microcontrollers.
Goodman Group (ASX:GMG) delivered operating profit for H1 of $1.127 billion, up 29% on pcp. The Group recorded a statutory loss of $220.1 million. Operating earnings per security (OEPS) was 59.2 cents, and GMG expects to achieve full year OEPS growth of 11% compared, to the previous guidance of 9%.
Wesfarmers (ASX:WES)’s revenue for H1 was $22.673bn, up 0.5% on pcp. NPAT was $1.425bn, up 3% on pcp. In its guidance, Wesfarmers says the performance of the Group’s businesses remains subject to international commodity prices, foreign exchange rates, competitive factors and seasonal outcomes.
Origin Energy (ASX:ORG) announced a half-year statutory profit of $995 million, an increase from $399 million in the pcp. Origin saw improved earnings across all business segments. Underlying EBITDA was $1.995 billion. The Board determined a fully franked interim dividend of 27.5 cents per share. In terms of outlook guidance, Origin said its Energy Markets EBITDA is expected to be $1,600 – $1,800 million for the full year FY24.
Treasury Wine Estates (ASX:TWE)’s H1 performance is in line with expectations. NPAT was down 5.9% to $182.3m, and EPS wasdown 7.5% to 24.6cps. For its outlook guidance, TWE expects a stronger H2, and expects to deliver mid-high single digit organic EBITS growth in FY24.
BIG CAP LOSERS
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| DTL | Data#3 Limited | 8.42 | -13.91 | 2,967,166 | $1,513,005,746 |
| PME | Pro Medicus Limited | 94.41 | -12.66 | 520,694 | $11,290,571,107 |
| IEL | Idp Education Ltd | 20.17 | -7.98 | 3,059,147 | $6,101,129,745 |
| MGH | Maas Group Holdings | 3.85 | -7.67 | 1,399,908 | $1,367,444,335 |
| WHC | Whitehaven Coal | 7.03 | -6.46 | 17,296,569 | $6,282,871,888 |
| FBU | Fletcher Building | 3.19 | -5.62 | 3,284,427 | $2,646,687,354 |
| EVT | EVT Limited | 11.29 | -5.13 | 250,577 | $1,931,076,748 |
| S32 | South32 Limited | 2.94 | -4.55 | 31,943,401 | $13,950,116,389 |
| AX1 | Accent Group Ltd | 2.27 | -4.03 | 2,052,815 | $1,328,805,543 |
| OCL | Objective Corp | 10.93 | -3.95 | 25,151 | $1,083,510,466 |
| BGL | Bellevue Gold Ltd | 1.34 | -3.78 | 2,857,303 | $1,636,505,173 |
| ERA | Energy Resources | 0.06 | -3.33 | 168,607 | $1,328,897,951 |
| TLX | Telix Pharmaceutical | 11.07 | -3.02 | 782,165 | $3,696,637,724 |
| TLS | Telstra Group | 3.89 | -2.63 | 37,344,970 | $46,102,165,138 |
| ZIM | Zimplats Holding Ltd | 20.60 | -2.60 | 8,999 | $2,276,536,276 |
| NHC | New Hope Corporation | 5.00 | -2.53 | 3,578,389 | $4,336,570,930 |
| DDR | Dicker Data Limited | 11.23 | -2.52 | 95,393 | $2,076,934,833 |
| SMR | Stanmore Resources | 3.52 | -2.49 | 1,063,713 | $3,254,023,799 |
| YAL | Yancoal Aust Ltd | 5.50 | -2.48 | 1,862,189 | $7,447,278,425 |
| MEZ | Meridian Energy | 5.24 | -2.42 | 25,739 | $6,798,820,436 |
| STX | Strike Energy Ltd | 0.31 | -2.34 | 23,987,566 | $915,912,275 |
Data#3 (ASX:DTL) fell despite reporting strong H1 results which include NPAT rising by 25.5% on pcp to $21.4 million. The company however said it is unable to provide specific FY24 guidance at this stage.
BHP Group (ASX:BHP) announced two items which will be recognised as exceptional items in its half year results. The items relate to an impairment of the carrying value of the Nickel West operations and West Musgrave project, and an increase to the provision for the Samarco dam failure. BHP will recognise a non-cash impairment charge of approximately US$2.5 billion (post tax) against the carrying value of Western Australia Nickel. BHP will also recognise an income statement charge of US$3.2 billion (post tax) in relation to the Samarco dam failure.
Whitehaven Coal (ASX:WHC)
Whitehaven reported a half year underlying NPAT of $372.3 million and underlying EBITDA of $622.8 million. A fully franked interim dividend of 7.0 cents per share will be paid on 8 March.
Telstra Group (ASX:TLS) reported total income of $11.7 billion for the half, up +1.2% on pcp. NPAT was $1.0 billion, up +11.5% on pcp. In the second half, Telstra said it will continue to invest in the capabilities and infrastructure needed to deliver sustainable growth now and beyond T25.
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