Domino's Pizza crashed -30pc after revoking its FY24 guidance. Picture Getty
ASX Large Caps: ASX up 3pc this week on miners’ rally, Rio reports air crash, and Domino’s falls 30pc
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- ASX extends gains, up almost 3pc this week
- Tesla’s Q4 results underwhelmed, share price down -6pc after the bell
- Domino’s Pizza crashed -30pc after revoking its FY24 guidance
The ASX 200 rose for the fifth consecutive day, up 0.45% on Thursday as the benchmark index extended its gains for the week to almost 3%.
This comes as Netflix and chipmaker ASML’s upbeat results helped push the tech-heavy Nasdaq higher overnight.
Traders were, however, disappointed with Tesla’s Q4 results announced after the bell, which missed analyst expectations.
Tesla dropped -6% after hours as it reported US$25.1bn in revenue and posted US$.71 in earnings a share in Q4 of of 2023, missing on consensus expectations of US$25.76bn and $0.74 respectively.
“We can expect Tesla shares to be on the back foot over the days ahead, with USD$194 the key level for investors to watch – its Q4 low,” said Josh Gilbert, a market analyst at eToro.
“A break below that level could see further downside pressure for the retail investors’ favourite, especially after losing its EV crown to BYD earlier this year.”
On the ASX, the Mining sector once again led the session today following production updates by some of the big guns (see more below).
Tech unexpectedly finished lower, dragged down by a 2% selloff in sector leader Wisetech (ASX:WTC) on no specific news.
Meanwhile, Treasurer Jim Chalmers is expected to ask consumer watchdog, the ACCC, to conduct a 12-month price inquiry into supermarket prices.
Coles (ASX:COL) dropped -1% on the news, while Woolworths (ASX:WOW) remained flat.
Across the region, Asian stock markets extended gains after the the People’s Bank of China (PBOC) said it has plans to cut the reserve requirement ratio for local banks by 50bp next month.
Reducing this reserve ratio gives banks more freedom to expand their lending books.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ERA | Energy Resources | 0.06 | 10.91 | 641,863 | $1,218,156,455 |
| RMD | ResMed Inc. | 28.62 | 6.99 | 3,601,291 | $16,295,931,743 |
| MIN | Mineral Resources. | 59.29 | 6.89 | 1,196,410 | $10,826,991,161 |
| IPL | Incitec Pivot | 2.93 | 5.60 | 6,086,051 | $5,379,963,330 |
| SGM | Sims Limited | 14.36 | 4.06 | 186,707 | $2,666,293,405 |
| RED | Red 5 Limited | 0.32 | 4.03 | 6,016,658 | $1,073,778,170 |
| LTM | Arcadium Lithium PLC | 8.24 | 3.91 | 1,783,831 | $4,302,914,936 |
| SLX | Silex Systems | 4.91 | 3.59 | 494,129 | $1,118,384,396 |
| RRL | Regis Resources | 2.18 | 3.57 | 3,440,854 | $1,586,211,497 |
| BPT | Beach Energy Limited | 1.59 | 3.42 | 3,437,065 | $3,501,847,162 |
| CCP | Credit Corp Group | 17.36 | 3.39 | 141,350 | $1,142,842,512 |
| CIA | Champion Iron Ltd | 8.09 | 3.19 | 883,190 | $4,063,113,218 |
| TUA | Tuas Limited | 3.03 | 3.06 | 124,400 | $1,371,153,587 |
| BSL | BlueScope Steel Ltd | 23.44 | 2.76 | 678,981 | $10,171,089,606 |
| IFT | Infratil Limited | 9.86 | 2.71 | 27,574 | $7,992,649,258 |
| RIO | Rio Tinto Limited | 132.46 | 2.67 | 745,355 | $47,894,315,930 |
Mineral Resources (ASX:MIN) surged after releasing its Q2 activities report.
MIN says FY24 volume and cost guidance remain unchanged for all operations, as the company’s spodumene production volumes rose by 9% Q-on-Q to 72Mt during the quarter.
MIN also said its Wodgina, Mt Marion and Bald Hill mines are still profitable at current spodumene prices. Costs at Wodgina and Mt Marion are forecast to decrease this year as stripping completes.
Iron ore shipments meanwhile increased 23% qoq to 4.8M wet metric tonne (wmt).
Fortescue (ASX:FMG) maintained its FY24 production guidance after shipping near-record levels of iron ore in H1.
Iron ore shipments were 48.7 million tonnes (Mt) in Q2 FY24, which contributed to shipments of 94.6Mt in H1 FY24, the second highest first half shipments in Fortescue’s history.
Fortescue has also maintained its full year FY24 guidance of between 192 million tonnes to 197 million tonnes.
Oil and gas producer Beach Energy (ASX:BPT) reported a decline in Q2 production due to downtime at its Kupe and Lang Lang gas plants.
Production was down 4% quarter-on-quarter to 4.3 MMboe, but the company has raised the upper end of its full year guidance.
FY24 full year guidance has now been revised to 18.0 – 20.0 MMboe (previously 18.0 – 21.0 MMboe).
Medical device company ResMed (ASX:RMD) has maintained its quarterly dividend at US48¢.
Resmed’s Q2 revenue increased by 12% to US$1.2 billion; while non-GAAP operating profit was up 20%.
During the quarter, Resmed resumed its share repurchase program, repurchasing $50 million of its owns stocks. Resmed’s parent stock is listed on the Nasdaq.
Rio Tinto (ASX:RIO) meanwhile revealed that four team members from its Diavik diamond mine and two airline crew members have died in a plane crash near Fort Smith, Northwest Territories, Canada.
Another member of the Diavik team survived the crash, and received treatment in hospital. The charter flight was on its way to Diavik.
“We will be working closely with authorities over the coming days, weeks and months, to support their efforts to understand the full facts of what has happened,” said Rio’s CEO, Jakob Stausholm.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| DMP | Domino Pizza Enterpr | 40.17 | -29.90 | 2,579,351 | $5,146,337,960 |
| SQ2 | Block | 95.34 | -5.42 | 104,962 | $3,524,098,838 |
| HDN | Homeco Daily Needs | 1.18 | -5.04 | 2,296,756 | $2,576,421,475 |
| WOR | Worley Limited | 15.19 | -4.14 | 1,011,315 | $8,343,773,904 |
| LTR | Liontown Resources | 0.91 | -3.46 | 16,620,048 | $2,276,665,670 |
| IEL | Idp Education Ltd | 19.56 | -2.78 | 1,446,342 | $5,600,124,565 |
| CQE | Charter Hall Soc In | 2.73 | -2.50 | 369,077 | $1,040,414,861 |
| LSF | L1 Long Short Fund | 2.89 | -2.36 | 561,877 | $1,833,594,904 |
| WTC | Wisetech Global Ltd | 73.14 | -2.36 | 212,401 | $24,970,674,166 |
| NEM | Newmont Corporation | 52.47 | -2.23 | 541,913 | $9,402,390,949 |
| MP1 | Megaport Limited | 9.40 | -2.08 | 432,721 | $1,527,598,176 |
| BGL | Bellevue Gold Ltd | 1.31 | -2.06 | 4,571,185 | $1,536,488,991 |
| JIN | Jumbo Interactive | 14.99 | -2.03 | 118,673 | $963,114,422 |
| JLG | Johns Lyng Group | 6.84 | -2.01 | 309,279 | $1,939,559,047 |
| RWC | Reliance Worldwide | 4.21 | -1.98 | 517,578 | $3,389,506,542 |
| CRN | Coronado Global Res | 1.63 | -1.96 | 1,298,918 | $2,782,913,192 |
| GMD | Genesis Minerals | 1.56 | -1.74 | 1,014,060 | $1,743,282,161 |
| AMC | Amcor PLC | 14.09 | -1.71 | 2,114,501 | $9,185,578,994 |
| CKF | Collins Foods Ltd | 11.79 | -1.67 | 226,088 | $1,409,793,612 |
Domino’s Pizza (ASX:DMP) crashed by -30% today after pulling its FY24 earnings guidance it made previously, saying that it is “no longer in effect”.
Domino’s H1 preliminary NPBT is expected to be between $87-90m, which is significantly below the pcp’s $104.8m.
What disappointed investors the most was Domino’s same store sales in Asia, which fell 8.9% in half, with the company saying that it was “weighing on the broader business”.
Sayona Mining (ASX:SYA) has cut 14 staff at its Québec subsidiary in response to market conditions and following a review of its North American Lithium (NAL) operations.
“This review of our Québec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle,” said James Brown, Sayona’s Interim CEO.
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