• Local shares closed 0.20% lower on Tuesday
  • Megaport tumbled 25%
  • Aussie retail sales slowed down in December

 

The ASX closed 0.20% lower on Tuesday after seesawing between gains and losses throughout the session.

The Tech sector weighed on the bourse, falling by 1% and tracking Nasdaq’s movements overnight.

Megaport (ASX:MP1), one of the sector leaders, plunged 23% after releasing its quarterly update earlier today.

The heavily shorted data centres company reported an EBITDA increase of 159% on pcp to $2.4m, which fell short of estimates.

Local investors were also cautious on the latest retail sales data, which showed that cost of living pressures in Australia have slowly begun to impact on Australian shoppers.

According to ABS data today, retail sales fell 3.9% in December despite higher spending over the Black Friday sales period.

The weakness in retail leaves a question mark over what the RBA might do in its next policy meeting on February 7th.

Rates on money markets dipped after the report, suggesting that the RBA could pause its rate at 3.7% (3.8% prior to the report).

At the moment, the RBA cash rate sits at 3.10%.

Elsewhere, the IMF has raised its world economic outlook for the first time this year.

The IMF upgraded its global slowdown projections to 2.9% for 2023 and 3.1% in 2024 in its closely watched World Economic Outlook report – citing resilient consumers and the reopening of China’s economy.

China’s PMI data meanwhile arrived stronger at 54.4 in January, up from 41.6 in December – according to data published today. A reading above 50 indicates expansion, while a reading below it reflects contraction.

Back to the ASX, energy stocks rose today despite oil prices tumbling 2% overnight.

A reported drone attack in Iran overnight and the Opec+ meeting later this week continued to be the focus for energy traders.

Looking ahead to tonight’s session on Wall Street, US wages and EU GDP are due for release.

 

BIG CAP WINNERS

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Flight Centre (ASX:FLT) was on trading halt today after the company announced the acquisition of Scott Dunn, a leading UK-based luxury travel brand specialising in tailor-made luxury holidays, for an enterprise value of £121 million ($211 million).

FLT also reported on its first half, and said it expected preliminary unaudited 1H23 TTV of $9.9 billion, group revenue of $1 billion, and group underlying EBITDA of $95 million. FLT also provided guidance of $250 – 280m of EBITDA for FY23.

Beach Energy (ASX:BPT) rose 4% after reporting that December quarter output fell 8% to 4.8MMboe, but July- December production rose 10% year-on-year.

 

BIG CAP LOSERS

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IGO (ASX:IGO) fell 6% despite record half year profits and dividends.

IGO reported a 552% increase in NPAT to $591m, while declaring a 14c fully franked interim dividend from 5c a year ago.

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