Skip to content

Briefing

Market Wrap

ASX drops as WiseTech tumbles

Make us a preferred source
Link copied

The news: The Australian sharemarket ended the day flat despite large falls from WiseTech as its issues surrounding its chief executive continues to develop and poor quarterly results from Reece and Newmont.

The numbers: The benchmark ASX 200 fell 0.12% to end at 8,206.3, despite six out of 11 sectors finishing in green.

The biggest fallers across the ASX 200 today were:

  • Reece (-7.49%) — Reported a drop in first quarter sales and flagged weaker earnings amid a softer trading environment;
  • Newmont (-6.37%) — Its Q3 earnings were labelled a “sizeable miss” as its all-in sustaining cost was 11% higher than estimates; and
  • WiseTech (-5.75%) — Morningstar downgraded its fair value due to inappropriate behaviour allegations against its CEO Richard White;

Other news included:

  • HMC Capital (trading halt) — Is buying Global Switch Australia for $1.9 billion as a seed asset for a new global digital infrastructure platform, Global DigiCo Platform;
  • Kelsian Group (2.43%) — Its subsidiary LibertyBus has won a 10-year contract renewal with the government of Jersey worth $260 million;
  • Telix Pharmaceuticals (2.04%) — The US Food and Drug Administration (FDA) accepted its drug application for a glioma imaging agent; and
  • Qube (-0.79%) — The ACCC has raised competition concerns regarding its proposed acquisition of MIRRAT.

A raft of quarterly results included:

  • Super Retail (-5.37%) — While sales for FY25 so far were up 4% year on year, its CEO warned of an uncertain outlook as consumers struggle with cost-of-living pressures;
  • Strike Energy (-2.33%) — Sales and production volumes during the September quarter were steady but sales revenue was 8% lower quarter on quarter;
  • Fortescue (-3.19%) — Q1 pricing for magnetite and hematite assets missed consensus forecasts;Insignia Financial (-2.6%) — Reported net institutional outflows of $1 billion during the September quarter;
  • Brambles (-1.78%) — Quarterly performance was softer as volumes remained flat but the company reiterated its full-year guidance;
  • Northern Star (-0.29%) — Reported a mixed result for the September quarter as production and costs were in line but production was 5% below consensus;
  • Karoon Energy (ended flat) — Posted an increase in production despite output cuts due to hurricane related shut-ins at its Who Dat project last month;
  • Regis Resources (1.81%) — Its first-quarter result met market expectations but its managing director Jim Beyer described the period as “turbulent”; and
  • IAG (1.46%) — Told investors that it is on track to meet its full-year guidance of "mid-to-high single digit" gross written premium growth.

The Australian dollar is buying 66.45 US cents.

What’s ahead: Tonight will see the latest US unemployment claim figures.

Friday’s events include:

  • Quarterly earnings: Resmed and Whitehaven;
  • AGMs: Pinnacle, Judo, Cochlear, Car Group, Qantas, Cleanaway; and
  • Economic: Reserve Bank of Australia Annual Report 2024.

By Jassmyn Goh