• ASX down around 1.5pc on China’s troubles
  • All sectors were down, led by Tech and Mining
  • The AUD is at lowest level in nine months on commodity demand concerns

 

The ASX 200 sank nearly 1.5% today as soft earnings by real estate majors combined with concerns over China’s outlook dented appetite for equities.

It was a sea of red as all 11 ASX sectors finished lower, led by Tech, Mining and Real Estate.

Concerns over China’s economic troubles had earlier sparked a global selloff overnight which sent Wall Street and European stocks tumbling.

There was more bad news from China today, with the July new home prices falling for the first time this year, official data showed.

Datt Capital chief investment officer Emanuel Datt says, however, that China’s second cut in interest rates and the loosening of foreign ownership regulations indicates a strong push to support property prices.

“This will have an impact on the Chinese demand for Australian commodities, particularly iron ore,” Datt said.

Crude oil meanwhile has also fallen for the third day in a row, pushing oil stocks lower.

“Considering that China is expected to account for more than 70% of this year’s global oil demand growth, the worries about the Chinese economy are top of the bearish factors for oil,” says oil analyst, Tsevetana Paraskova.

In currency markets, the AUD has been slaughtered, falling to a 9-month low of US64.47 on China worries.

Elsewhere, New Zealand’s central bank RBNZ has held its cash rate steady today at 5.5%, in line with expectations.

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Vehicles parts company Bapcor (ASX:BAP) rose 6% after declaring a record revenue of $2b, up 9.7% on pcp. Pro-Forma NPAT was $63.3m, in line with guidance.

The company also announced record full year dividend of 22 cents per share, fully franked, with a payout ratio of 59.6%, including a final dividend of 11.5 cents per share.

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Vicinity Centre (ASX:VCX) fell as full year FY23 statutory NPAT came in at $271.5m, down from $1,215.2m in FY22. This was largely driven by non-cash reduction in asset valuations. Final distribution was 6.25 cps, bringing FY23 distribution to 12.0cps.

Mirvac Group (ASX:MGR) reported full year FY23 operating profit after tax of $580m, down 3% on the pcp. Operating EBIT was $767m, down 1% on pcp. Full year distribution was $414m, representing DPS of 10.5cps, and up 3% on pcp.

Transurban (ASX:TCL) fell after full year FY23 earnings came in below analysts’ expectations. FY23 distribution was 58 cps, representing distribution growth of more than 40% year-on-year. The company has also named a new CEO, Michelle Jablko.

Fletcher Building (ASX:FBU) fell as full year revenue came in flat at NZ$8.47 billion. The company also cut its dividend payout to NZ16¢ from NZ22¢ a year earlier.

Endeavour Group (ASX:EDV), owner of Dan Murphy’s and BWS, saw FY23 group sales increase by 2.5% on the pcp to $11.9bn. Group NPAT was $529m, up 10.7% on pcp.

Computershare (ASX:CPU) dropped despite the share registry company reporting a full year revenue jump of 27% to $3.3 billion, and earnings jump of 72% to $1.23 billion.

Netwealth (ASX:NWL) fell as Funds Under Administration (FUA) were $70.3 billion at 30 June, representing 26.3% growth from pcp. NPAT was $67.2 million, growth of 20.9% to pcp, but had missed forecasts.

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