ASX ekes out modest gain, WiseTech plunges 20%
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The news: The Australian sharemarket closed higher after five straight falls as the major lenders rallied following an eight-day selloff.
Software giant WiseTech Global sank more than 20%, after four of its six board members resigned, dragging the wider tech sector down nearly 7%.
The ASX 200 rose 0.15% to end at 8,308.2, with 6 out of 11 sectors finishing in green.
ASX 200 declines:
- WiseTech Global (-20.1%) — Announced the resignation of four of its six board members, including chairman Richard Dammery, due to "intractable differences" relating to the ongoing role of founder Richard White. The market's largest tech stock dragged the IT sector down 6.8%.
- Iress (-14.5%) — Swung to a full-year profit and reinstated dividends, but outlined softer profit guidance for FY25.
ASX 200 gains:
- NIB Holdings (12.5%) — First-half underlying operating profit of $105.8 million outstripped consensus forecasts of $98 million, supported by more resilient margins in its key Australian residents health insurance business.
- EVT (12.9%) — Easily beat market expectations for first-half profit, driven by record earnings and margin improvement at its hotel portfolio.
Earnings news:
- APA Group (7.7%) — Missed estimates for first-half profit due to higher net finance costs, though underlying earnings hit forecasts.
- Stanmore Resources (2.3%) — Set better-than-expected guidance for the 2025 calendar year, reflecting the impact of the expansion at its South Walker Creek mine in Queensland.
- Lovisa (-3.8%) — Recorded a lower-than-expected 6.5% rise in first-half net profit to $56.9 million, as an increasing number of stores in higher-cost markets impacted earnings.
- Chorus (-3.8%) — Swung to a first-half net loss, driven by lower revenue from its legacy copper network as it aims to become an "all-fibre digital infrastructure company".
- Ampol (-2.6%) — Posted a 78% slide in full-year profit and slashed its dividend amid disruptions at its Lytton refinery.
- Regis Healthcare (-0.3%) — Returned to a first-half profit of $24.4 million, boosted by increased care funding from the federal government and larger revenue from new acquisitions.
- NextDC (-2.6%) — Widened its first-half loss amid ongoing investment in capacity but reaffirmed its full-year revenue and earnings guidance.
- Reece (-13.2%) — Reported a sharper-than-expected 19% drop in half-year profit and slashed its dividend, citing tough trading conditions in its two key markets, the US and ANZ.
- oOh!media (15.6%) — Notched a 2% rise in adjusted net profit for the 2024 calendar year, outstripping market estimates by 6% and boosted by its $15 million cost-cutting program.
Other news:
- Perpetual (-2.3%) — Ended talks with private equity group KKR over a proposed takeover of its corporate trust and wealth businesses.
- Alcoa Corporation (-5.4%) — Confirmed that chairman Steven Williams will step down after nine years on the board.
- Neuren Pharmaceuticals (4.1%) — Secured a rare pediatric disease designation from the US Food and Drug Administration for a trial-phase treatment targeting Pitt Hopkins syndrome and Angelman syndrome.
- Financials (1.9%) — Big four banks Commonwealth Bank (3%), ANZ (2.6%), National Australia Bank (2%) and Westpac (0.6%) all rallied after an eight-day selloff that wiped a combined $63 billion from their market value.
The Australian dollar is buying 63.80 US cents.
What’s ahead: Companies due to report on Tuesday include oil and gas giant Woodside Energy, media group Nine Entertainment, buy now, pay later lender Zip, insurance broking and underwriting network AUB Group, and metals recycling firm Sims.
