CBA shares caused domino effect selloff in other bank stocks today. Picture Getty
ASX Large Caps: Shares tumble 1pc as CBA causes selloff in ASX bank stocks
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- The ASX tumbled 1% today
- Bank stocks dragged local bourse lower as CBA reported earnings
- RBA boss Phil Lowe is due to meet Senate today
Banks dragged the local bourse much lower on Wednesday, with the ASX 200 tumbling by over 1%.
Commonwealth Bank (ASX:CBA) had earlier reported its half year results which included a 9% lift in cash profits and a huge 20% increase in interim dividends.
Its shares however slumped by over 5% as investors determined that its price multiples, which is the highest of the Big Four at 19x, was just too high.
The selloff in CBA shares caused a knock-on effect in other banks, pushing the ASX financials index (XFJ) lower by 3%.
Other ASX companies to reports their earnings today include Cochlear (ASX:COH), which jumped by 6% after a profit beat and a share buyback announcement.
Premium wine maker Treasury Wines (ASX:TWE) slumped by 5% despite a 72% increase in NPAT to $188m for the half year.
Fortescue Metals (ASX:FMG) shares meanwhile traded flattish after first half revenue fell by 4% to US$7.8 billion. Bottom line NPAT was also down 15% to US$2.37 billion, and the company dropped its interim dividend payout by 12.8%.
Overnight, data showed that US CPI rose 0.5% in January to 6.4% YoY, down from 6.5% a month earlier.
Inflation has remained sticky and if this slow rate of decline continues, it will take longer to reach the Fed’s target of 2% inflation.
“That would support the case for higher Federal Reserve rates for a longer time period,” says John Lloyd of Janus Henderson Investors.
“Yesterday’s data should not materially change the Fed’s case for at least two more 25 bps rate increases, which is currently priced in the forwards market,”Lloyd added.
Back home, RBA boss Phil Lowe is due to meet with a national Senate committee today, ahead of his address to Australia’s parliament this Friday.
And tonight, a slew of crucial reports will be released in the US including: retail sales, industrial production, and the NAHB housing market index.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market cap |
|---|---|---|---|---|---|
| SGR | The Star Ent Grp | 1.47 | 14.01 | 30,574,054 | $1,223,338,260 |
| GUD | G.U.D. Holdings | 8.96 | 8.34 | 1,023,726 | $1,165,199,136 |
| MFG | Magellan Fin Grp Ltd | 9.54 | 8.11 | 1,909,545 | $1,600,917,168 |
| COH | Cochlear Limited | 225.31 | 7.76 | 191,736 | $13,753,602,711 |
| SMR | Stanmore Resources | 3.81 | 6.58 | 2,632,531 | $3,217,932,662 |
| NHC | New Hope | 5.73 | 5.92 | 5,728,714 | $4,773,077,871 |
| SKC | Skycity Ent Grp Ltd | 2.34 | 4.71 | 598,664 | $1,695,257,616 |
| NWL | Netwealth Group | 13.84 | 4.22 | 475,190 | $3,238,795,443 |
| RWC | Reliance Worldwide | 3.53 | 3.98 | 6,545,742 | $2,678,421,253 |
| PDN | Paladin Energy Ltd | 0.80 | 3.92 | 11,055,720 | $2,279,774,744 |
| VSL | Vulcan Steel | 8.11 | 2.79 | 182,313 | $1,036,813,633 |
| WHC | Whitehaven Coal | 8.13 | 2.78 | 7,087,704 | $7,033,984,594 |
| YAL | Yancoal Aust Ltd | 5.79 | 2.57 | 2,210,344 | $7,447,278,425 |
| NAN | Nanosonics Limited | 4.71 | 2.39 | 446,139 | $1,389,357,964 |
| HLS | Healius | 2.81 | 2.37 | 6,886,413 | $1,591,427,047 |
| SDR | Siteminder | 3.83 | 2.27 | 124,909 | $1,027,957,221 |
Star Entertainment Group (ASX:SGR) rose 14% on dip buying after falling over 30% in the last two sessions.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| BRN | Brainchip Ltd | 0.5175 | -12.2881 | 26,067,447 | $1,042,564,306 |
| CTD | Corp Travel Limited | 15.84 | -8.1739 | 2,276,333 | $2,524,119,119 |
| TWE | Treasury Wine Estate | 13.505 | -5.7572 | 6,987,023 | $10,344,084,362 |
| CBA | Commonwealth Bank. | 103.07 | -5.6568 | 5,749,263 | $184,459,247,963 |
| SYA | Sayona Mining Ltd | 0.2175 | -5.4348 | 33,237,085 | $1,998,613,606 |
| WBT | Weebit Nano Ltd | 5.66 | -5.0336 | 519,053 | $1,034,899,496 |
| SNZ | Summerset Grp Hldgs | 8.31 | -4.7018 | 268 | $2,024,059,316 |
| CXO | Core Lithium | 0.965 | -4.4554 | 15,627,233 | $1,868,682,334 |
| BKL | Blackmores Limited | 83.43 | -4.2905 | 39,988 | $1,695,326,355 |
| WBC | Westpac Banking Corp | 22.87 | -4.1492 | 12,997,225 | $83,726,576,266 |
| NAB | National Aust. Bank | 30.41 | -3.7963 | 5,599,043 | $99,262,804,737 |
| UMG | United Malt Group | 3.54 | -3.5422 | 174,068 | $1,097,987,425 |
| CPU | Computershare Ltd | 23.74 | -3.4567 | 1,930,617 | $14,845,704,372 |
| ANZ | ANZ Group Holdings | 24.86 | -3.4563 | 7,981,712 | $77,336,694,637 |
| CMM | Capricorn Metals | 3.99 | -3.3898 | 338,903 | $1,551,881,263 |
| DEG | De Grey Mining | 1.375 | -3.169 | 1,347,295 | $2,216,857,019 |
| BEN | Bendigo and Adelaide | 9.66 | -3.012 | 3,373,538 | $5,652,179,414 |
| LIC | Lifestyle Communit. | 16.405 | -2.8715 | 584,122 | $1,765,767,263 |
Brainchip (ASX:BRN) fell 12% after the company told the ASX it wasn’t aware of the reason why there was significant increase in the trading volume of its shares since yesterday.
Corporate Travel (ASX:CTD) tumbled 8% despite reporting a 182% increase in EBITDA to $51.3 million. CTD forecasts EBITDA to come in between $160m and $180m for the full year.
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