ASX closes lower as energy and financial stocks drop
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The news: The Australian sharemarket ended lower after energy and financial stocks extended Monday's losses, as the Reserve Bank cut the official cash rate for the first time since November 2020.
The ASX 200 fell 0.66% to end at 8,481, with 7 out of 11 sectors finished in red.
Biggest ASX 200 declines:
- Challenger (-9%) — Reported first-half normalised profit 2% behind market estimates. Cash operating earnings margin at its life insurance division was 3.22% below consensus forecasts.
- Bapcor (-7.7%) — Announced the resignation of chief financial officer George Saoud after only six months in the role.
Biggest ASX 200 gains:
- Star Entertainment (14.8%) — Extended Monday's rally after receiving a $650 million debt financing proposal from US asset manager Oaktree Capital Management.
- HMC Capital (9.9%) — Assets under management jumped 45% during the first half, while pre-tax operating earnings soared 240%.
Earnings news:
- BHP (0.4%) — Pared early losses to close higher after its half-year results roughly matched estimates.
- Judo Capital Holdings (8.5%) — Reported a 70% jump in first-half net profit and upgraded its full-year net interest margin guidance.
- Hub24 (3.7%) — Posted a 40% increase in first-half underlying net profit.
- Monadelphous (5.3%) — First-half underlying net profit after tax came in 4% ahead of consensus estimates.
- Deterra Royalties (-2.6%) — Took a 19% hit to first-half profit, as lower iron ore prices weighed on revenue.
- Reliance Worldside (-3.9%) — Fell despite recording 15% growth in half-year sales, with profit boosted following its acquisition of Holman Industries.
- Seek (1.8%) — Narrowed its full-year profit guidance and lifted its interim dividend despite a weaker first-half result. It also announced a part sale of its holding in Employment Hero to KKR for $95 million.
- Dexus (-0.7%) — Swung to a first-half profit of $10.3 million and reiterated its full-year guidance.
Other news:
- Big banks — Westpac (-3%), National Australia Bank (-2.5%), ANZ (-1.8%) and Commonwealth Bank (-1.4%) all fell as they cut home loan interest rates following the RBA's decision.
- Infratil (3.1%) — Together with The Future Fund, acquired a 12.04% stake in CDC Data Centres from the Commonwealth Superannuation Corporation for over $13 billion.
- Woodside Energy (-1.5%) — Extended recent losses as analysts trimmed their price targets on the oil and gas giant. It joined a selloff across energy stocks, which ended as the worst performing sector (-1.4%).
The Australian dollar is buying 63.53 US cents.
What’s ahead: Companies reporting on Wednesday include Santos, Goodman Group, Stockland, Vicinity Centres and The Lottery Corporation.
