China’s GDP grew more than expected as ASX takes a little tumble. Picture Getty
ASX Large Caps: Market inches lower, investors cautious as China grows at slowest pace since 1970s
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- The ASX finally snapped after a 4-day winning streak
- China’s GDP grew more than expected
- Miners were sold, Discretionary stocks bought
The ASX 200’s string of wins has been broken today as the index retreated by 0.15%.
Traders cautiously watched data coming out of China, which showed the country’s economy or GDP grew by just 2.9% in the October – December period, the second slowest pace since the 1970s.
The figure was however much better than the 1.6% consensus.
Chinese retail sales also fell 1.8%, but it was much better than expectations of a 9% fall.
According to ANZ’s Chief Economist for Greater China, Raymond Yeung, China’s zero-Covid exit and other policy U-turns in the Year of the Rabbit are tactical moves.
“Ultimately, the policymakers want to ensure stable gross GDP growth at an average of 4.7 per cent until 2035,” Yeung said.
On the ASX, most mining stocks were sold today despite Rio Tinto (ASX:RIO) reporting that its 2022 export volumes were incrementally higher than 2021.
Rio Tinto beat consensus in the fourth quarter, shipping 87.3Mt to hit a full year rate of 321.6Mt, virtually unchanged from 2021 levels.
The bad news is its costs are expected to be slightly above the top end of its US$19.5-21/t guidance range, mainly due to inflation, diesel prices and labour. Guidance for 2023 remains unchanged at 320-335Mt at costs of US$21-22.5/t.
Other large caps to give an update today include JB Hi Fi (ASX:JBH), which reported net sales increasing by 8.6% on pcp to $5.278 billion.
The electronics retailer also reported record net profit after tax (NPAT) of $329.9 million, an increase of 14.6% on pcp.
Consumer staple stocks gained as Australian consumer sentiment rose by 5% in January, according to data released on Tuesday. This was the largest monthly gain since April 2021.
“It is worth noting, that stronger confidence is not necessarily a leading indicator of stronger spending,” warned Adelaide Timbrell, senior economist at the ANZ.
“ANZ-observed spending data shows weaker spending in the first week of 2023 compared to the previous year.”
And looking ahead to tonight’s session, Wall Street will be back from the Martin Luther King Jr’s long weekend.
BIG CAP WINNERS
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| Security | Description | Last | % | Volume | MktCap |
| DTL | Data#3 Limited | 7.04 | 4.92 | 694,379 | $1,037,360,525 |
| CUV | Clinuvel Pharmaceut. | 25.77 | 3.29 | 81,987 | $1,232,787,933 |
| MTS | Metcash Limited | 4.14 | 2.99 | 2,564,294 | $3,881,477,240 |
| JLG | Johns Lyng Group | 6.09 | 2.96 | 421,989 | $1,543,747,578 |
| PXA | Pexagroup | 12.50 | 2.54 | 738,163 | $2,161,601,356 |
| ORA | Orora Limited | 3.04 | 2.53 | 1,244,039 | $2,502,241,298 |
| WOW | Woolworths | 34.74 | 2.39 | 1,043,701 | $41,275,047,747 |
| JHX | James Hardie Indust | 30.19 | 2.37 | 510,750 | $13,148,351,653 |
| GMG | Goodman Group | 19.50 | 2.36 | 2,061,131 | $35,822,936,126 |
| LFS | Latitude Group | 1.42 | 2.16 | 15,255 | $1,444,511,405 |
| HLS | Healius | 3.37 | 1.97 | 1,455,785 | $1,916,682,210 |
Data3 (ASX:DTL) rose 6% after saying that consolidated net profit before tax for the first half of FY23 is expected to be near the top end of the $21 million to $25 million guidance range it provided at the AGM in October.
As outlined at the AGM, the company also said it expected its first half order backlog, related to the timing of product deliveries and ongoing supply chain constraints, would be similar to the backlog at the start of FY23.
Coles Group (ASX:COL) and CSL (ASX:CSL) rose 2% today on no specific announcements.
BIG CAP LOSERS
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| Security | Description | Last | % | Volume | MktCap |
| BAP | Bapcor Limited | 6.28 | -6.69 | 1,761,553 | $2,284,246,125 |
| PNV | Polynovo Limited | 2.42 | -6.56 | 2,163,076 | $1,781,929,850 |
| 29M | 29Metalslimited | 2.20 | -6.38 | 601,270 | $1,131,186,833 |
| IMU | Imugene Limited | 0.16 | -5.88 | 14,627,211 | $1,091,691,670 |
| CMM | Capricorn Metals | 4.86 | -5.73 | 357,516 | $1,929,618,351 |
| RRL | Regis Resources | 2.17 | -5.04 | 4,586,525 | $1,721,459,109 |
| CXO | Core Lithium | 1.02 | -4.69 | 29,254,474 | $1,966,932,016 |
| 360 | Life360 Inc. | 5.50 | -4.68 | 426,664 | $1,129,301,682 |
| HUB | HUB24 Ltd | 26.74 | -4.33 | 308,745 | $2,237,626,075 |
| GOR | Gold Road Res Ltd | 1.76 | -4.22 | 1,524,163 | $1,974,335,767 |
| BGL | Bellevue Gold Ltd | 1.29 | -3.90 | 1,507,112 | $1,486,587,184 |
| INR | Ioneer Ltd | 0.53 | -3.64 | 9,730,278 | $1,154,086,047 |
| S32 | South32 Limited | 4.53 | -3.62 | 13,767,314 | $21,488,788,460 |
| SFR | Sandfire Resources | 6.06 | -3.58 | 2,460,837 | $2,869,281,308 |
| DEG | De Grey Mining | 1.49 | -3.56 | 3,141,066 | $2,412,002,884 |
| PDN | Paladin Energy Ltd | 0.76 | -3.48 | 6,151,499 | $2,354,176,956 |
Bapcor (ASX:BAP) fell 7% on no specific news.
Origin Energy (ASX:ORG) fell 3% after saying that it will allow the consortium of Brookfield and MidOcean Energy to conduct due diligence until 24 January.
The consortium had earlier proposed to acquire all of the issued shares in Origin at $9.00 cash per share.
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