- The ASX climbed 0.15% as earnings season continues
- Australia consumer sentiment lowest in 50 years
- The crucial US inflation report is due tonight
The ASX climbed 0.15% on Tuesday, with Tech and Comm Services leading the charge.
This comes as local investors assessed earnings reports on the ASX ahead of the US inflation report later tonight.
Australia’s biggest healthcare company CSL (ASX:CSL) rose 0.7% despite reporting an 8% fall in half year profits to $US1.62bn as it finalised the Vifor Pharma acquisition.
Online furniture retailer Temple & Webster (ASX:TPW) crashed 26% after revenue fell by 12% to $207 million for the half.
James Hardie (ASX:JHX) retreated 4% after downgrading its full-year earnings guidance.
The Star Entertainment Group (ASX:SGR) has appointed former Westpac chief compliance officer Scott Saunders as its own chief risk officer, pending regulatory approvals. After plunging 20% yesterday, the SGR share price has tumbled by another 12% today.
Oil stocks also fell today as crude prices continued higher overnight, but at a more moderate pace.
Meanwhile, business conditions have started the year strong after easing for the last 3 months, with the business survey from NAB revealing a “very strong” +18 result.
The consumer sentiment survey from Westpac and Melbourne Institute meanwhile dropped to the second-lowest reading in the last 50 years.
“Whilst spending is clearly slowing, it’s not yet at the level to force the RBA to take their foot off of the tightening peddle,” said Matt Simpson, senior market analyst at City Index.
Over in Japan, the Nikkei rose half a percent as the PM’s office nominated Kazuo Ueda to helm the Bank of Japan. Ueda is a university professor and former BOJ board member with a PhD from MIT.
And tonight, the all crucial US inflation data will be released.
Pricing pressures are expected to rise, and experts believe we should not be surprised if the Valentine’s day inflation report is very hot.
“Risky assets could struggle if the bond market sees more traders place bets for much more Fed tightening,” says Oanda analyst, Edward Moya.
“If the inflation report is too hot, Fed swaps could start to fully price in two quarter point rate hikes and be on the fence about a third one,” he added.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SGM | Sims Limited | 15.79 | 7.56 | 1,314,566 | $2,835,431,489 |
| DHG | Domain Holdings Aus | 3.08 | 5.12 | 1,507,662 | $1,850,755,458 |
| CGF | Challenger Limited | 7.59 | 4.48 | 4,041,082 | $4,965,246,263 |
| CRN | Coronado Global Res | 2.10 | 3.96 | 2,531,495 | $3,386,436,535 |
| KAR | Karoon Energy Ltd | 2.32 | 3.81 | 2,320,105 | $1,254,783,884 |
| ABC | Adbri Limited | 1.82 | 3.71 | 828,379 | $1,142,098,221 |
| WTC | Wisetech Global Ltd | 56.54 | 3.25 | 520,717 | $18,006,918,791 |
| HLS | Healius | 2.75 | 3.20 | 2,551,463 | $1,544,962,024 |
| PPT | Perpetual Limited | 26.76 | 3.14 | 382,885 | $2,907,640,177 |
| BLD | Boral Limited | 3.68 | 3.08 | 1,699,073 | $3,938,025,656 |
| PTM | Platinum Asset | 2.22 | 3.02 | 768,891 | $1,261,359,635 |
| BFL | Bsp Financial Group | 4.79 | 3.01 | 1,040 | $2,172,572,902 |
| CMM | Capricorn Metals | 4.14 | 2.99 | 1,200,697 | $1,510,547,864 |
| SQ2 | Block | 111.52 | 2.97 | 104,532 | $3,377,468,276 |
| PWH | Pwr Holdings Limited | 12.13 | 2.97 | 99,742 | $1,182,480,405 |
| AX1 | Accent Group Ltd | 2.13 | 2.90 | 732,619 | $1,143,592,113 |
Rex Airlines (ASX:REX) is in a trading halt after announcing that it has signed a Letter of Intent (LOI) to lease two Boeing 737- 800NG jets. The two aircraft are expected to arrive in Australia in June and July.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| TPW | Temple & Webster Ltd | 3.705 | -25.15 | 5,653,933 | $608,601,025 |
| SGR | The Star Ent Grp | 1.2925 | -12.96 | 39,938,948 | $1,413,741,102 |
| VSL | Vulcan Steel | 7.86 | -10.99 | 329,184 | $1,160,337,691 |
| ANN | Ansell Limited | 25.56 | -9.01 | 1,436,147 | $3,572,152,435 |
| VUL | Vulcan Energy | 6.16 | -7.23 | 1,022,207 | $952,410,399 |
| SYA | Sayona Mining Ltd | 0.2325 | -5.10 | 29,029,711 | $2,128,957,971 |
| BRG | Breville Group Ltd | 20.62 | -4.98 | 1,208,616 | $3,098,355,621 |
| LIC | Lifestyle Communit. | 16.86 | -4.48 | 296,637 | $1,845,221,562 |
| AGY | Argosy Minerals Ltd | 0.715 | -4.03 | 7,195,547 | $1,046,283,586 |
| JHX | James Hardie Indust | 30.48 | -4.00 | 2,992,918 | $14,155,990,675 |
| MIN | Mineral Resources. | 87.32 | -3.82 | 490,420 | $17,258,756,827 |
| RWC | Reliance Worldwide | 3.385 | -3.29 | 6,985,373 | $2,765,331,678 |
| BRN | Brainchip Ltd | 0.59 | -3.28 | 7,817,386 | $1,077,905,468 |
| LKE | Lake Resources | 0.685 | -2.84 | 7,359,080 | $1,001,061,016 |
| AZJ | Aurizon Holdings Ltd | 3.36 | -2.61 | 9,207,091 | $6,350,428,738 |
| SUN | Suncorp Group Ltd | 12.685 | -2.50 | 3,302,634 | $16,445,623,517 |
| GNE | Genesis Energy Ltd | 2.57 | -2.28 | 12,998 | $2,780,841,738 |
| SNZ | Summerset Grp Hldgs | 8.72 | -2.24 | 2,701 | $2,070,482,694 |
| IMD | Imdex Limited | 2.425 | -2.22 | 1,028,744 | $1,196,195,254 |
Vulcan Steel (ASX:VSL) plummeted 11% as the company reported a 3% drop (vs pcp) in EBITDA to NZ$115m for the half.
Seven West Media (ASX: SWM) fell 3% despite posting a profit of $114.9 million. SWM said it will not to pay a dividend.