- The ASX tumbled by 0.3%, taking the index to lowest level since early January
- Energy rose, while all other sectors fell ahead of the US CPI report
- Star Entertainment plunged 20%
The ASX slipped by 0.3% on Monday, stretching its loss to almost 2% since a week ago.
Every sector gained except Energy as investors digested a slew of earnings reports from large capped stocks today.
Star Entertainment Group (ASX:SGR) was the worst performer of the lot, tumbling by 20% after the casino said its first half earnings would be impacted by competition from Crown Sydney.
The Star also said the impact of operational changes following the Bell Review could lead to a non-cash impairment in the range of $400 million to $1.6 billion.
Fletcher Building (ASX:FBU) also lost 6% after a 46% slump in net profits to $92m.
The builder said EBIT outlook for FY23 will be impacted by $800 million to $855 million due to adverse weather impacts in New Zealand in January and February.
Energy stocks meanwhile were rallying today, led by Woodside Energy (ASX:WDS), as oil prices climbed on Friday.
Crude prices rose 2% after Russia said it will cut oil production by about 5% next month in response to Western sanctions, or as the Kremlin put it: “destructive energy policy of the countries of the collective West”.
This week will be a crucial week in the economics front.
On Tuesday (US time), the US inflation report will be released with a 7th straight decline on the cards.
After peaking in June, US CPI has fallen for six consecutive months, as energy and food costs began to ease.
“However, the risk is that prices aren’t falling as quickly as the Fed desires, and would justify further rate hikes,” said Josh Gilbert, a market analyst at eToro.
“Essentially, the Fed has no incentive to take its foot off the gas with a dovish approach, if they give an inch, the market will take a mile, and it’s easier to cut if they make a mistake rather than re-tighten,” he added.
On Thursday, theABS will release Australia’s unemployment rate.
Last month, the jobless rate stayed near decade lows at 3.5%, and January’s reading this week is expected to show the rate unchanged, said Gilbert.
“This is, of course, a good sign, as a strong labour market helps Australia avoid a recession.
“However, a low unemployment rate is a double-edged sword, as a tight labour market means wage growth continues to rise,” Gilbert added.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| IAG | Insurance Australia | 4.95 | 5.10 | 11,787,394 | $11,539,071,630 |
| PNV | Polynovo Limited | 2.28 | 4.84 | 1,573,116 | $1,492,968,253 |
| YAL | Yancoal Aust Ltd | 5.66 | 3.85 | 1,476,902 | $7,196,394,932 |
| EDV | Endeavour | 7.07 | 3.59 | 7,851,222 | $12,214,483,716 |
| CRN | Coronado Global Res | 2.02 | 3.59 | 1,845,082 | $3,269,084,774 |
| NWH | NRW Holdings | 2.97 | 3.31 | 673,362 | $1,289,185,431 |
| JLG | Johns Lyng Group | 5.76 | 3.14 | 578,529 | $1,457,548,474 |
| SLR | Silver Lake Resource | 1.14 | 2.93 | 4,838,477 | $1,032,016,210 |
| ZIM | Zimplats Holding Ltd | 30.19 | 2.69 | 12,570 | $3,164,546,881 |
| WHC | Whitehaven Coal | 7.95 | 2.65 | 7,826,455 | $6,882,811,726 |
| KAR | Karoon Energy Ltd | 2.22 | 2.55 | 1,876,322 | $1,215,396,049 |
| SVW | Seven Group Holdings | 23.55 | 2.44 | 713,067 | $8,351,360,918 |
| SYR | Syrah Resources | 1.90 | 2.43 | 1,954,393 | $1,242,943,303 |
| CUV | Clinuvel Pharmaceut. | 23.52 | 2.26 | 52,822 | $1,136,437,774 |
| ING | Inghams Group | 2.82 | 2.17 | 330,926 | $1,025,835,699 |
| ALD | Ampol Limited | 31.41 | 2.08 | 600,276 | $7,332,555,586 |
| GOR | Gold Road Res Ltd | 1.51 | 2.03 | 2,534,953 | $1,587,282,832 |
| DEG | De Grey Mining | 1.42 | 1.97 | 3,052,893 | $2,177,827,846 |
| WDS | Woodside Energy | 36.56 | 1.95 | 1,988,128 | $68,089,166,788 |
Insurance Australia (ASX:IAG) climbed 5% after reporting a 171% jump in first-half NPAT to $468 million.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SGR | The Star Ent Grp | 1.5 | -20.00 | 51,624,837 | $1,785,026,644 |
| VUL | Vulcan Energy | 6.7 | -6.42 | 1,068,552 | $1,026,996,755 |
| AZJ | Aurizon Holdings Ltd | 3.455 | -6.37 | 15,905,119 | $6,792,197,694 |
| LLC | Lendlease Group | 7.805 | -5.96 | 4,409,856 | $5,720,346,463 |
| FBU | Fletcher Building | 4.655 | -5.77 | 2,034,459 | $3,868,577,543 |
| LYC | Lynas Rare Earths | 8.315 | -5.30 | 8,752,975 | $7,946,539,272 |
| JBH | JB Hi-Fi Limited | 44.25 | -5.08 | 1,215,924 | $5,097,150,194 |
| ABC | Adbri Limited | 1.745 | -4.90 | 2,178,147 | $1,197,571,563 |
| TLX | Telix Pharmaceutical | 6.21 | -4.46 | 743,377 | $2,060,646,543 |
| BAP | Bapcor Limited | 6.005 | -3.92 | 765,488 | $2,121,328,125 |
| MEZ | Meridian Energy | 4.86 | -3.57 | 29,424 | $6,368,112,762 |
| MFG | Magellan Fin Grp Ltd | 8.715 | -3.49 | 1,304,139 | $1,639,034,243 |
| DHG | Domain Holdings Aus | 2.96 | -3.27 | 1,665,804 | $1,932,870,888 |
JB Hi-Fi (ASX:JBH) slumped 4% despite reporting a 14.6% jump in profit to $329.9m for the half.
Lynas Rare Earths (ASX:LYC) fell 6% after raising concerns that the Malaysian government could force Lynas to operate a radiation-free operation at the Gebeng Industrial Park by July.
Aurizon Holdings (ASX:AZJ) was clipped by 7% after reporting a sluggish first half, with profits tumbling 34%.
Lendlease (ASX:LLC) fell almost 7% despite narrowing its first half loss to $141m from $264m a year earlier.