- ASX slumps, dragged down by health giant CSL
- RBA says rates could be cut before inflation reaches target
- Audinate rallies 20pc to record high
The ASX 200 lost -0.4% on Monday, weighed down by a steep -3% loss in the health sector, which, in turn, was dragged down by a -5% drop in heavyweight CSL (ASX:CSL) – see more below.
The Tech sector meanwhile tracked Nasdaq higher today. On Friday, the Nasdaq hit its highest level since November 2021, propped up by rallies in mega stocks like Amazon and Nvidia.
Most commodity prices lagged on Friday, with iron ore, gold, copper and nickel also settling lower – putting pressure on mining stocks today. Oil prices also eased after Iran’s foreign minister said he sees a diplomatic solution for the Israel-Hamas conflict.
Meanwhile, local traders are parsing through RBA’s governor Michelle Bullock’s comments late Friday, when she said that rates could be cut before inflation falls to its 2-3% target range.
Giving evidence to parliament, Bullock said:
“Do we have to be absolutely in the inflation band before we start thinking about if we think monetary policy is restrictive now, which we think it is?
“No, I don’t believe we do.”
Regionally, things are very quiet today as Asian stock markets are closed in China, Hong Kong, Japan, Malaysia, Singapore, South Korea and Vietnam for the Lunar New Year.
China will be closed for the rest of the week, while Japan is closed for National Day celebrations today.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| AD8 | Audinate Group Ltd | 19.33 | 20.59 | 742,082 | $1,332,234,641 |
| JBH | JB Hi-Fi Limited | 60.36 | 6.74 | 649,436 | $6,182,836,626 |
| BFL | Bsp Financial Group | 6.99 | 5.75 | 13,283 | $3,088,324,061 |
| AX1 | Accent Group Ltd | 2.22 | 4.48 | 1,408,429 | $1,193,672,776 |
| PME | Pro Medicus Limited | 111.46 | 4.39 | 118,119 | $11,152,690,139 |
| LOV | Lovisa Holdings Ltd | 25.36 | 4.06 | 221,551 | $2,673,209,612 |
| BPT | Beach Energy Limited | 1.72 | 3.78 | 14,385,547 | $3,775,607,201 |
| CTT | Cettire | 4.32 | 3.35 | 2,068,864 | $1,593,575,760 |
| AZJ | Aurizon Holdings Ltd | 3.88 | 3.19 | 7,104,697 | $6,921,046,972 |
| RDX | Redox Limited | 2.36 | 3.06 | 67,016 | $1,202,436,470 |
| SUL | Super Ret Rep Ltd | 16.40 | 2.79 | 320,459 | $3,601,932,675 |
| TNE | Technology One | 16.29 | 2.71 | 349,887 | $5,165,225,674 |
| MCY | Mercury NZ Limited | 6.35 | 2.42 | 9,171 | $8,625,608,882 |
| ALU | Altium Limited | 52.72 | 2.35 | 168,283 | $6,795,551,425 |
| PWH | Pwr Holdings Limited | 10.93 | 2.25 | 44,155 | $1,074,175,360 |
| APE | Eagers Automotive | 14.53 | 2.11 | 285,562 | $3,655,692,834 |
Audinate (ASX:AD8) rose over 20% to its all-time high after H1 revenue increased 47.7% on the pcp to US$30.4 million, a record for the company. EBITDA was $10.1 million, up 137% on the pcp. Audinate has a strong cash and term deposits balance of $111.7 million at 31 December.
JB Hi-Fi (ASX:JBH) say its half year FY24’s total sales increased by 0.7% on pcp to $3.62 billion, driven by continued customer demand for technology and consumer electronics products. Gross profit decreased by 3.0% to $795.6 million with gross margin down 84 bps to 22%, driven by on-floor discounting. NPAT was $264.3m, from $330m in the previous half. The group continues to maintain a strong balance sheet, with closing net cash of $488 million at 31 December.
Beach Energy (ASX:BPT) announced that production for H1 FY24 was 8.8 MMboe, down 11% on H1 FY23 largely driven by lower customer gas nominations. Sales revenue was $941 million, up 16% on pcp. Underlying NPAT was $173 million, down 10% on pcp. For the full year FY24, Beach is guiding the market to production of 18.0 – 20.0 MMboe, and capital expenditure of $900 – $1 billion.
BIG CAP LOSERS
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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 |
CSL (ASX:CSL) fell -5% after saying that its Phase 3 AEGIS-II trial of did not meet ts primary efficacy endpoint at 90 days. The trial was evaluating the efficacy and safety of CSL112 compared to placebo, for reducing the risk of major adverse cardiovascular events (MACE) in patients following an acute myocardial infarction (AMI). As a result, there are no plans now for a near-term regulatory filing.
Liontown Resources (ASX:LTR) fell almost -7% after a clause that forced Gina Rinehart to wait four months if she wanted to bid below the $3 price for LTR paid in October elapsed today. This means that Rinehart, who already owns 19.9% of LTR, could now make another play for LTR.