ASX edges lower ahead of budget
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The news: The Australian sharemarket closed lower ahead of the release of the federal budget and after a weak Wall Street session.
The numbers: The benchmark ASX 200 fell 0.3% to 7,726.8, with eight out of 11 sectors finishing in red.
The worst-performing sector was industrials, down 0.88%, followed by AREITs (-0.85%) and IT (-0.74%). The worst-performing stock across was Fletcher Building, down 4.01%, after analysts downgraded their estimates following cuts to its full-year guidance.
Industrial peer Transurban fell 1.88% after changing its organisational structure, while Worley ended 1.24% lower despite affirming its full-year outlook.
Meanwhile, BHP closed 0.16% down after Anglo American rejected its revised takeover offer that valued the mining company at around $64.44 billion.
The best performing sector was consumer discretionary, up 0.73%, followed by healthcare (0.21%) and utilities (0%). Discretionary company GUD surged 11.87% after reaffirming its earnings outlook and analysts retaining ‘overweight’ and ‘buy’ ratings on the stock. GUD was the best performing ASX 200 stock during the trading day.
Ramsay Health Care rose 0.97% following sentiment from Jarden analysts who expected a backlog from the UK’s National Health Service to boost earnings over the next three financial years.
Minnow Avita Medical jumped 9.02% after reaffirming its full-year guidance for revenue despite reporting slower growth for its first quarter.
Meanwhile, ALS increased 2.78% after Morgans analysts upgraded their rating on the stock to ‘add’ and lifted their target price. Analysts expect a recovery in the life sciences and commodities sectors.
The Australian dollar is lower, buying 66.01 US cents.
The context: A special edition of Capital Brief’s Political Capital newsletter covering the federal budget will be sent as Treasurer Jim Chalmers steps up to announce the budget.
After the budget, the US core producer price index will be released to help the Federal Reserve in its next monetary policy decision, while chair Jerome Powell speaks at the Netherlands’ Foreign Bankers’ Association overnight.
Wednesday will see the Australian Bureau of Statistics release the latest wage price index figures, while offshore US CPI figures will also be released.
