ASX closes flat; tech resurgence enters second day
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The news: The Australian sharemarket finished flat as the second day of a tech sector rebound was offset by losses in the financials and healthcare sectors.
The benchmark ASX 200 fell 0.03% to end at 8,867.4, with eight of 11 sectors finishing in the green.
The tech sector (+2.1%) was the best performing as WiseTech (+2.5%), Xero (+2.6%), NextDC (+3.2%) and Technology One (+1.7%) finished higher.
The financial sector (-1.1%) finished lower as Commonwealth Bank (-0.7%), NAB (-0.02%), Westpac (-1.8%) and ANZ (-2.5%) posted losses. The healthcare sector (-1.7%) was the worst performing after CSL (-5%) announced CEO and managing director Paul McKenzie would depart immediately.
Biggest movers:
- Electro Optic Systems (+11.8%) – Rejected the conclusions made in a report published by "prolific short seller" Grizzly Research as "misleading, manipulatory and pejorative" and has directed legal advisers in Australia and Germany "to consider all available legal remedies".
- DroneShield (+7.3%) – Appointed Michael Powell as its new chief operating officer, effective on 9 February. He moves from Thales and replaces Nathan Vardanega who has moved into a chief delivery officer role.
- G8 Education (-20.6%) – Will recognise a goodwill impairment charge of around $350 million in its full-year results driven by weaker occupancy rates, cost of living pressures, higher compliance costs and projected increases in wages and operating expenses.
Other news:
- Treasury Wines (+3.5%) – Reached a settlement with US distributor Republic National Distributing Company (RNDC) over the closure of its California operations last year. Sims (+2.4%) – Entered an agreement to purchase Tri Coastal Trading assets in Houston including harbourside land and a deep sea docking facility for USD66.5 million ($94 million) and divest land holdings.
- PLS Group (+1%) – Secured a two-year offtake agreement with Chinese battery giant Canmax Technologies for the supply of spodumene concentrate.
- Macquarie Group (+0.8%) – Deployed $5.7 billion into private capital in the third quarter as it flagged a "substantially" stronger net profit in its closely-watched commodities business.
- Region Group (+0.4%) – More than doubled its first-half profit to $180 million and upgraded its full-year earnings guidance.
- Westpac (-1.8%) – Announced the retirement of chief information officer Scott Collary after six years with the bank.
- Amotiv (-3.8%) – Reported a 39.4% increase in statutory net profit to $46 million for the half-year driven by lower significant items. However, this was below the Visible Alpha consensus estimate of $49.91 million.Revolution Private Credit – Requested a trading halt on the ASX ahead of an equity raise by way of an institutional placement.
What’s ahead:
- The US Census Bureau will release retail sales data for January on Wednesday at 12:30am AEDT.
- The US Bureau of Labour Statistics will release employment cost index data for the December quarter on Wednesday at 12:30am AEDT.
- The National Bureau of Statistics of China will release consumer price index and producer price index data for January on Wednesday at 12;30pm AEDT.
- RBA deputy governor Andrew Hauser will deliver a speech at an event hosted by the Australian Chamber of Commerce and Industry in Sydney on Wednesday at 12:30pm AEDT.
- The Japanese stock exchange will not trade on Wednesday to observe the National Foundation Day public holiday.
