Hello and welcome to HotCopper’s The ASX Today, I’m Seja Al Zaidi. It’s Wednesday of Week 20, and the market is back under pressure after a big federal budget night.
Hear from all the ASX-listed companies that were at the RIU Resources Round-Up in Sydney, right here on HotCopper.com. Over a dozen interviews.
Sentiment’s turning quite cautious as investors dump bank stocks en masse. The ASX is down around -0.4%, marking a fourth straight session of losses.
The major drag today is in banking – more specifically, Commonwealth Bank. CBA has plunged more than -9%, one of its biggest falls in years, after reporting a quarterly profit slightly below expectations and revealing a higher-than-expected bad debt charge of $316 million. Today’s red run for CBA has raised wider concerns that the economic environment down under is starting to bite.
The broader sector followed CBA’s lead. Westpac’s down -3%, ANZ -2%, and NAB about -1.5%, as analysts warn of the budget’s material impact on the sector. New changes to capital gains tax and negative gearing, which many see as a headwind for housing and lending, will add yet another layer of pressure for the banks, too.
But while financials are dragging the market down, materials have again been the standout intraday. BHP has been up more than 3% and hitting fresh record highs, with Rio Tinto and South32 also pushing higher, as copper surges above US$14,000 a tonne on strong demand out of China.
Elsewhere, Aristocrat is surging, up more than 12% after delivering a strong profit result and announcing a $1B expansion to its share buyback. CSL has been stabilising slightly after its recent sell-off, while Ramsay Health Care goes lower amid concerns the federal budget could impact demand.
One of the biggest shocks outside banks is Healius; it’s collapsed more than -20% after cutting its guidance and flagging rising costs and weaker volumes.
And finally, Temple & Webster is down more than 5% after issuing soft forward guidance well below expectations, while Perenti has been a standout winner, jumping over 7% after securing a major $850 million mining contract. Zip Co is also slightly up despite losing a High Court trademark case.
That’s The ASX Today, I’ll see you tomorrow.
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