ASX falls on Monday after disappointing retail sales. Picture Getty
ASX Large Caps: Market subdued as iron ore price eases; BNPL on watch after collapse of Openpay
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- Local shares finished 0.25% lower on Monday
- Autralian retail sales fall in Q4
- BNPL sector came under pressure
The ASX 200 index closed Monday 0.25% lower as it tracked movements on Wall Street.
Energy and Mining sectors rose half a percent, while all other sectors were in the red.
Investors were downbeat after the latest Australian retail figures show a 0.2% fall in Q4.
CBA economist, Stephen Wu, said,”With another rate hike expected at the February RBA Board meeting, and a large stock of fixed rate debt due to rollover over this year, demand will only weaken further from here.”
The RBA will convene for its first meeting of the year tomorrow, and according to a Reuters poll, 30 out of 31 economists expect a 25bp hike to 3.35%.
That would be the central bank’s fourth consecutive 25bp hike, and ninth back-to-back hike this cycle – which is the most aggressive in history.
“Still, there is evidence that the (relatively low) interest rate is starting to bite on the economy,” said Matt Simpson, a senior market analyst at City Index.
“If we look at data since their last meeting, it could be argued the economy is slowing overall.
“Retail sales dipped for the first time in a year in Q4 by -0.2% q/q, as consumers cut back spending. This could be taken as a sign from the RBA that their tighter policy is working,” Simpson said.
Newcrest Mining (ASX:NCM) was the best large cap performer today, up 10% after US mining giant Newmont upgraded its all-scrip offer when the first one was rejected.
Newmont is now offering Newcrest shareholders 0.380 Newmont shares for each Newcrest share, after previously offering 0.363 shares.
Singapore iron ore futures have dropped to a near three-week, pushing iron ore miners like Fortescue (ASX:FMG) lower today.
Meanwhile, the BNPL sector came under pressure after the collapse and demise of BNPL play and small capped Openpay (ASX:OPY). Sector leader Block Inc (ASX:SQ2) fell 1% on the news.
Looking ahead to tonight, the US market will be interesting as US-China tensions have increased with the downing of a monitoring balloon belonging to China in US territory. China has responded with a threat of ‘serious repercussions’.
BIG CAP WINNERS
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| Security | Description | Last | % | Volume | MktCap |
| NCM | Newcrest Mining | 24.64 | 9.73 | 11,870,063 | $20,063,763,054 |
| BPT | Beach Energy Limited | 1.54 | 3.70 | 10,996,217 | $3,387,780,479 |
| PXA | Pexagroup | 13.46 | 2.98 | 412,356 | $2,317,648,049 |
| IPL | Incitec Pivot | 3.52 | 2.78 | 10,409,491 | $6,642,409,599 |
| CRN | Coronado Global Res | 2.13 | 2.66 | 2,450,278 | $3,470,259,221 |
| WHC | Whitehaven Coal | 8.44 | 2.62 | 6,021,936 | $7,309,652,763 |
| CPU | Computershare Ltd | 24.62 | 2.54 | 1,568,917 | $14,495,541,357 |
| AUB | AUB Group Ltd | 24.76 | 2.53 | 212,352 | $2,451,962,010 |
| NHC | New Hope | 5.92 | 2.25 | 3,579,166 | $5,108,340,272 |
| VUK | Virgin Money Uk PLC | 3.32 | 2.15 | 2,993,151 | $2,398,265,932 |
| TPG | TPG Telecom Limited | 4.78 | 2.14 | 1,476,004 | $8,701,719,011 |
| OCL | Objective Corp | 13.88 | 2.13 | 37,172 | $1,292,505,734 |
| BGA | Bega Cheese Ltd | 3.72 | 2.06 | 554,715 | $1,106,190,820 |
| NUF | Nufarm Limited | 5.82 | 1.93 | 465,770 | $2,172,183,942 |
| SMR | Stanmore Resources | 3.53 | 1.88 | 589,086 | $3,118,780,675 |
Beach Energy (ASX:BPT) jumped 4% after getting an upgrade from Morgans.
BIG CAP LOSERS
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| Security | Description | Last | % | Volume | MktCap |
| NCK | Nick Scali Limited | 10.805 | -13.00 | 2,551,664 | $1,006,020,000 |
| SDR | Siteminder | 4.030 | -6.93 | 172,739 | $1,190,121,596 |
| SYA | Sayona Mining Ltd | 0.245 | -5.77 | 46,046,620 | $2,259,302,337 |
| LKE | Lake Resources | 0.760 | -5.59 | 6,354,907 | $1,143,055,486 |
| PDN | Paladin Energy Ltd | 0.758 | -5.31 | 15,988,377 | $2,384,078,164 |
| CXO | Core Lithium | 1.070 | -5.31 | 14,918,420 | $2,089,780,719 |
| AGY | Argosy Minerals Ltd | 0.708 | -5.03 | 4,972,620 | $1,046,283,586 |
| BRN | Brainchip Ltd | 0.633 | -4.89 | 6,530,130 | $1,175,093,666 |
| ARU | Arafura Rare Earths | 0.595 | -4.80 | 14,583,301 | $1,317,901,881 |
| CCP | Credit Corp Group | 22.045 | -4.77 | 155,777 | $1,575,747,716 |
| HVN | Harvey Norman | 4.205 | -4.65 | 3,899,987 | $5,494,889,344 |
| LTR | Liontown Resources | 1.488 | -4.65 | 9,733,672 | $3,426,439,146 |
| PWH | Pwr Holdings Limited | 11.475 | -4.53 | 238,725 | $1,206,571,687 |
Nick Scali (ASX:NCK) plunged 12% despite profit increasing by 70% during the half to $60.6m.
Revenue for the half was $283.9 million, up 57.4% from the pcp.
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