• ASX closes much lower after weak results from Woolies and Corp Travel
  • Wisetech jumps after strong half results
  • Australia’s wage growth beats inflation

 

The ASX 200 closed -0.8% lower on Wednesday, tracking the selloff on Wall Street.

The Tech sector led, buoyed by a strong performance by Wistech (ASX:WTC), however the gains were offset by losses in Staples, Mining and Energy stocks.

Staples were dragged by the the fall in Woolworths (ASX:WOW) shares – see more below.

Mining stocks were also weaker, dragged down by BHP and Rio Tinto, which were down -3% each.

Meanwhile, today’s ABS data shows that Australia’s wage growth has overtaken inflation for the first time in three years. The wage price index (WPI) rose by 4.2% in the 12 months to December, versus the CPI rate of 4.1%.

Across the region, China stocks rallied after policymakers took further steps to rescue its battered stock market. China’s banks have cut their 5-year mortgage loan prime rate by a record 25 basis points.

Looking ahead to tonight’s session on Wall Street, the market’s focus will be on Nvidia Corp’s much anticipated earnings release.

 

BIG CAP WINNERS

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WiseTech (ASX:WTC) jumped 10% after reporting total revenue for the half of $500.4 million, up 32% on the pcp. Underlying NPAT was $128.4 million, up 5% on pcp. Interim dividend was declared at 7.70cps, up 17% on pcp. The company reconfirmed its FY24 guidance range for revenue of $1.04 billion–$1.095 billion, representing revenue growth of 27%–34%.

Wisetech has also increased its full year EBITDA margin guidance range to 44%-46%, due to H1 EBITDA margin strength.

National Australia Bank (ASX:NAB) rose 1% despite cash earnings tumbling almost 17% in the December quarter to $1.8 billion, due mainly to impairment charges. The bank’s revenue increased 1%, and statutory NPAT was $1.7bn. The bank’s net interest margin was slightly higher.

Domino’s Pizza Enterprises (ASX:DMP) rose 3% as its Australia and NZ markets delivered their strongest growth in six years. Same store sales were up +1.25%. EBIT fell -5.3% to $107.9m vs the pcp. The company will pay an interim dividend of 55.5 cents per share (unfranked).

Scentre Group (ASX:SCG) released its results for the 12 months to 31 December, with Funds From Operations (FFO) of $1.094 billion (21.11 cents per security), up 5.2% on the previous year. Distributions for the period were $860.6 million (16.60 cents per security), up 5.4% and above guidance.

 

BIG CAP LOSERS

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Corporate Travel (ASX:CTD) sank -20% despite tripling its net profits in H1. The company’s statutory NPAT rose 222% on pcp to $50.4m. The company said that macro issues seen in the first half have largely dissipated and are unlikely to impact the second half.

Woolworths Group (ASX:WOW) tumbled as first half F24 result was mixed. Group sales were 4.4% higher and group NPAT was 2.5% higher to $929m. But BIG W had a challenging first half. H1 EBIT for Big W was $54 million, down 60% on the prior year.

Santos Ltd (ASX:STO) has delivered a record dividend to shareholders despite underlying annual profit falling by 42%. The oil producer says production guidance for 2024 is between 84 to 90 million barrels of oil equivalent (mmboe). Sales volume is expected to be between 87 to 93 mmboe.

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