ASX Large Caps: Shares down -1pc this week, Resmed weighs but Dicker Data surges on bumper first half

• The ASX finished 0.1pc higher on Friday, but down around -1.3pc for the week
• The RBA says inflation will come back to preferred range by June 2025
• China’s discretionary consumption is resilient

The ASX 200 closed flattish on Friday, but down around -1.3% for the week.

The local bourse was weighed down by Healthcare, which dropped by 2% following sector heavyweight ResMed (ASX:RMD)’s 10% fall (more details in below section).

Real Estate sector was also sold off, but Energy and Tech kept the index afloat.

The RBA meanwhile has trimmed its forecast for economic growth, and expects inflation to slow down faster than it predicted in May.

In its quarterly Statement on Monetary Policy (SOMP) released today, the central bank says the forecast for its preferred measure of “trimmed mean” inflation is 2.9% by June 2025 (currently at 5.9%).

Elsewhere, more encouraging news as Apple’s earnings report last night showed that China’s retail consumption is more resilient than expected.

Apple said that its China business beat market consensus by 8% at US$15.7 billion. China is a crucial region for Apple, accounting for almost 20% of its quarterly revenue.

“However, the worry for investors is that this key region is set to see deflation next week, which could dent sales,” said Josh Gilbert, market analyst at eToro.

“In deflationary environments, consumers become cautious, anticipating better deals due to falling prices, and therefore pulling back on spending, especially on high-value items.”

BIG CAP WINNERS

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Dicker Data (ASX:DDR) rose after reporting a bumper first half. Revenue increased by 9.4% on pcp to around $1.6bn, while bottom line NPAT rose 8% on pcp to $54m.

In its outlook comment, Dicker said,” The appetite for digital transformation amongst Australian and New Zealand businesses remains strong, and the company stands to continue benefitting from the demand.”

Treasury Wine Estates (ASX:TWE) was also one of the best performing large caps today, up over 2% on no specific news.

BIG CAP LOSERS

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ResMed (ASX:RMD) fell more than -10% after a big drop in margins.

Resmed reported a revenue increase of 21% to $4.2 billion for the year, which was up 21% on pcp. However its margins contracted by 80 bps to 55.8%, while non-GAAP gross margin contracted 120 bps to 56.5%.

Afterpay’s parent Block Inc (ASX:SQ2) dropped -5% after its parent listed shares on NYSE slipped 6% after the bell despite beating analyst expectations on revenue.