ASX extends losses to three-day streak
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The news: The Australian sharemarket ended lower as a rally in materials could not offset a late selloff and losses in financials and tech.
The numbers: The benchmark ASX 200 dropped 0.19% to end at 8,126.4, with seven out of 11 sectors finishing in red.
The worst performing sector was financials, down 1.67%, followed by IT (1.2%). The rotation away from financials continued on Wednesdays with the big four banks continuing to slide. NAB (-2.66%), CBA (-2.48%), ANZ (-1.16%) and Westpac (-0.82%) all fell. Macquarie dropped 2.08% as it was fined $5 million for market gatekeeper failure.
The worst performer across the ASX 200 was Premier Investments as its shares plunged 9.89% after the retail group posted a drop in full-year profit and delayed its Smiggle demerger.
Sigma Healthcare shares fell 3.52% after it reported a slump in profit and noted the competition regulator has delayed its decision over its proposed merger with Chemist Warehouse.
Light & Wonder extended losses as it dropped 1.32% after a Nevada district court filed an injunction restricting the company from manufacturing and selling new Dragon Train poker machines while its court case with ASX-rival Aristocrat Leisure proceeds. However, analysts remained positive on the stock.
Elsewhere, apparel retailer KMD Brands shares dropped 1.08% after it swung to a full-year loss as sales fell sharply amid weak consumer sentiment and softer trading.
The best performing sector was materials, up 2.88%, followed by energy (0.43%). Miners made up 18 of the top 20 performers across the ASX 200, boosted by China’s slate of new growth policy measures, along with a cut to its mortgage rate for existing housing loans, announced on Tuesday.
Fortescue jumped 4.67% in line with mining gains but also announced that it signed a $4.06 billion partnership with global equipment manufacturer Liebherr to jointly develop and validate a range of zero emission mining solutions.
Meanwhile, Webjet’s newly listed spin-off B2C company 'Webjet Group' extended gains to soar 13.37% after its market debut at the start of the week.
Technology manufacturer Codan ended 0.19% higher after announcing that it would acquire US-based military communications solutions provider Kägwerks for an upfront cash payment of $33.6 million.
The Australian dollar is buying 68.76 US cents.
The context: The OECD will publish its latest Interim Economic Outlook tonight.
Thursday will see the latest job vacancies, and national account figures published by the Australian Bureau of Statistics, while Brickworks and Washington Soul Pattison release their full-year results.
The competition regulator’s decision on the proposed Lendlease communities sale to Stockland and its capital partner Supalai is due on Thursday.
