• ASX retreated for third consecutive day this week
  • Santos, Flight Centre, Woolworths and Domino’s all reported earnings
  • Australian wages grew by 3.3%, well short of inflation rate

 

The ASX has retreated for the third consecutive day this week, closing 0.35% lower on Wednesday, following a 2% rout on Wall Street overnight.

10 out of 11 ASX sectors were in the red, with Utilities the only one in green territory after Origin Energy (ASX:ORG) lifted on a revised takeover price by the Brookefield Asset led consortium.

Origin’s share price leapt 13% after the board backed a lower revised offer of $8.90, versus the previous $9 offer.

Earnings continue to dominate the headlines however with Santos (ASX:STO) climbing 3% after reporting a 221% increase in net profit from 2021 to $2.1 billion.

Heavily shorted stock Flight Centre (ASX:FLT) fell 1.5% after an underlying loss of $2.4m in the half.

Retailer Woolworths (ASX:WOW) lifted almost 2% after reporting a 14% increase in NPAT to $907m for the half.

Domino’s Pizza (ASX:DMP) crashed 23% today after missing market expectations, with net profit sinking by 21% to $71.7m, but the pizza chain operator said it was positive it could turn its fortunes around.

“Ultimately, Dominos is a business that has struggled since its 2020 COVID boom,” said Josh Gilbert, market analyst at eToro.

“Shares are down 9 per cent in the last three years, its valuation is high at 28 times forward earnings, and investors are beginning to lose patience as the company isn’t delivering.”

Meanwhile, Australian wage growth is the highest in a decade but still way below the inflation rate. According to data from the ABS today, wages grew 3.3% YoY versus the CPI rate of 7.8%.

Minister for Employment Tony Burke said he welcomed the figures,” Wages growth isn’t the problem when it comes to inflation, it’s part of the solution to cost of living pressures.”

Looking ahead to tonight’s action on Wall Street, investors will be tuned in to the release of the FOMC meeting minutes.

The Fed fund futures market currently shows a 76% chance of a 25bp hike in March (down from over 90% two weeks ago).

“Fed fund futures not only lowered the terminal rate to 5%, but even began pricing in two cuts this year,” said Matt Simpson, a senior market analyst at City Index.

“And that has all been reversed, and rightly so in our view.”

 

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap
ORG Origin Energy 7.92 12.91 37,291,755 $12,076,461,174
SDR Siteminder 4.09 6.23 402,522 $1,058,191,257
A2M The A2 Milk Company 6.42 5.59 4,530,888 $4,458,481,790
WTC Wisetech Global Ltd 58.31 4.51 851,640 $18,349,490,002
APE Eagers Automotive 11.97 3.91 455,087 $2,942,186,100
EBO Ebos Group Ltd 40.57 3.49 43,364 $7,473,279,845
DTL Data#3 Limited 7.24 3.43 290,726 $1,082,194,288
STO Santos Ltd 7.03 3.16 12,477,650 $22,563,565,352
IFT Infratil Limited 7.85 3.15 16,164 $5,509,515,059
SDF Steadfast Group Ltd 5.77 3.13 1,371,457 $5,805,560,993
SCG Scentre Grp 2.98 3.11 8,567,160 $15,000,193,400
BGA Bega Cheese Ltd 3.61 3.00 756,517 $1,063,645,020
MCY Mercury NZ Limited 5.63 2.93 18,464 $7,581,463,552
YAL Yancoal Aust Ltd 5.85 2.72 1,451,401 $7,513,300,397
PPH Pushpay Holdings Ltd 1.18 2.61 839,828 $1,313,041,847
SKC Skycity Ent Grp Ltd 2.37 2.60 933,281 $1,756,074,033
NHF NIB Holdings Limited 7.34 2.37 709,889 $3,460,789,121
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Siteminder (ASX:SDR) rose 6% after reporting a 30% rise in revenue, but an underlying net loss of -$25.5m.

Wisetech (ASX:WTC) rose 4.5% after revenue for the first half rose 35%, and net profit increased 41% to $109 million.

 

BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap
DMP Domino Pizza Enterpr 54.77 -23.25 1,972,787 $6,357,473,960
CGC Costa Group Holdings 2.455 -8.05 1,713,709 $1,240,339,064
CRN Coronado Global Res 1.975 -7.28 6,879,676 $3,570,846,445
JDO Judo Cap Holdings 1.42 -5.65 1,035,861 $1,663,807,407
JHX James Hardie Indust 30.88 -4.69 1,299,946 $14,445,798,358
360 Life360 Inc. 5.22 -4.40 182,762 $1,068,628,628
TAH TABCORP Holdings Ltd 0.995 -4.33 51,741,164 $2,370,656,031
SPK Spark New Zealand 4.555 -4.31 3,557,844 $8,916,260,711
MND Monadelphous Group 12.22 -4.01 487,205 $1,222,530,477
KAR Karoon Energy Ltd 2.18 -3.96 3,073,116 $1,277,291,218
DRR Deterra 4.575 -3.89 892,912 $2,515,850,909
CMM Capricorn Metals 3.83 -3.77 972,104 $1,495,517,537
EVN Evolution Mining Ltd 2.79 -3.46 6,867,430 $5,303,197,162
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Costa Group (ASX:CGC) fell 8.5% as full year profits slumped 10% to $47m.

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